HSBC and Bank of China kept their prime rates unchanged at 5 percent while Standard Chartered left its rate unchanged at 5.25 percent.
The decision by the city’s de facto central bank came after the US Federal Reserve maintained its target rate for interest rates in the range of 3.5 to 3.75 percent overnight following the third meeting of its policy-setting Federal Open Market Committee (FOMC) this year.
However, the HKMA did warn of uncertainties ahead due to impact of rising global oil prices on inflation.
In a statement, it noted that the Fed’s policy decision was in line with market expectations but warned that the path of US monetary policy remained “quite uncertain”.
“It depends on developments in US inflation and labour market, especially as oil prices have remained elevated amid continued tensions in the Middle East region, with the impact on US inflation still to be observed,” it said.
The HKMA added that the uncertain situation in regard to interest rates in the United States might also influence the rate environment in the SAR.
It called on the public to carefully manage interest rate related risks when taking out mortgages or investing in properties.
Under the linked exchange rate system introduced in 1983, the Hong Kong dollar is pegged to the US dollar, and thereby the city’s local interbank rates also generally track their US dollar counterparts.
However, HKMA also stressed that the city’s shorter-tenor rates could also be influenced by the supply and demand of the Hong Kong dollar funds in the local market, including seasonal factors and capital market activities.
Earlier, while US Fed officials left rates unchanged, four out of 12 voting members have opposed the outcome, indicating a deepening division over the outlook for the US monetary policy, amid the increased uncertainty caused by the conflict in the Middle East.
Among the four officials who voted against the decision was governor Stephen Miran, who sought a quarter-point cut, while the other three backed the pause but not the Fed statement signalling an inclination toward interest rate cuts.
The 8-4 vote marked the first time since October 1992 that four officials dissented over a FOMC decision.
The US inflation rate, which has been above the Fed’s two percent target for five years, rose sharply to 3.3 percent in March, driven mainly by rising energy costs.
Hong Kong’s inflation rate also accelerated in March to 1.7 percent, with officials saying it was mainly due to faster price increases for fuel-related items.
