**HONG KONG** – In a significant move reflecting the interconnectedness of global economies, the Hong Kong Monetary Authority (HKMA) announced on Thursday that it would keep its base rate unchanged at 4.75%. This decision comes on the heels of the U.S. Federal Reserve's choice to maintain its benchmark interest rate in the 4.25%-4.50% range.

Hong Kong’s monetary policy is tightly aligned with that of the United States due to the city’s currency being pegged to the U.S. dollar within a strict range of 7.75 to 7.85 per dollar. As a result, any fluctuations in U.S. interest rates directly impact Hong Kong’s economic landscape.

The Federal Reserve's decision is notably strategic, as it has maintained its forecast for two quarter-point rate cuts before the end of the year. Despite this, it has also projected slower economic growth coupled with rising inflation. The HKMA cautioned that interest rates in Hong Kong may remain at elevated levels for an extended period, indicating that any potential cuts in U.S. rates may be subject to significant unpredictability.

In light of these circumstances, the HKMA issued a reminder for the public to exercise caution regarding interest rate risks, especially when making decisions around property purchases, mortgages, or other types of borrowing.

Moreover, the HKMA reported that Hong Kong's financial markets are functioning smoothly and that market liquidity remains stable. The pegged exchange rate for the Hong Kong dollar also continues to demonstrate resilience, providing a degree of stability for businesses and consumers alike.

As the economic landscape evolves, observers will be keen to see how interconnected monetary policies will react to shifting global economic realities. Stakeholders are urged to stay alert to potential changes that could impact the market.