The Hong Kong Monetary Authority (HKMA) increased its base rate by 25 basis points to 5.25% on Thursday after the US Federal Reserve announced a rate hike of the same margin.

HSBC maintained its best lending rate the same at 5.625% following the move, and along with other banks, held those rates the last time HKMA announced a rate hike last month, following a few increases last year, Bloomberg reports.

Hong Kong's monetary stance moves in lock step with the US as the HK Dollar is pegged to the greenback in a range of 7.75-7.85 per Dollar.

"The Fed's rate-hike decision is consistent with market expectation, but there will continue to be considerable uncertainties on the interest rate path in the US," according to a statement by HKMA.

On Wednesday, the Federal Reserve hiked interest rates by 25 basis points but signalled it was on the brink of pausing further rises in borrowing costs following the recent collapse of two US banks, Reuters news agency reports. 

The policy statement by the Federal Open Market Committee also said the US banking system was "sound and resilient." 

The Hong Kong Monetary Authority added: "Individual banks in the US had exhibited financial health and liquidity problems recently, which might result in credit tightening." 

"It is too soon to assess how much this will further affect economic activities and influence monetary policy," the statement went on to say. 

"The public should be prepared for the movements of banks' lending rates," the HKMA continued in the statement on Thursday. "The financial and monetary markets of Hong Kong continue to operate in a smooth and orderly manner, despite the volatile overseas markets." 

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