The Hong Kong Monetary Authority (HKMA) on Thursday raised its base rate to 4.75 percent following a US rate hike, and called on people to assess risks when making borrowing decisions as local lending rates might go up further.

Speaking to reporters, the HKMA's chief executive Eddie Yue said the US rate increase of half a percentage point, which lifted the target range for the Federal Funds rate to 4.25 - 4.5 percent, will not affect Hong Kong's financial and monetary stability.

"Our monetary and financial markets continue to operate in a smooth and orderly manner. The linked exchange rate system also continues to work well," said the chief of Hong Kong's de facto central bank.

But Yue said interbank rates in the SAR might remain at "elevated levels for some time".

"The public should be prepared for the likelihood that banks' deposit and lending rates might go further up, and should carefully assess and manage the relevant risk when making a property purchase, taking up a mortgage or making other borrowing decisions."

Yue said the interest rate hike will affect the property market to a certain extent, but noted that other factors - like the overall economy and the unemployment rate - are also at play.

He said, for example, the authority is observing if gradual opening-up measures on the mainland will benefit the Hong Kong economy.

The HKMA chief said they have been keeping a close eye on the counter-cyclical measures in the property market, and will see if adjustments are needed depending on changes in interest rates and the market situation.