The Hong Kong Monetary Authority on Thursday said there's a chance that interest rates in the city will remain at "relatively high levels" for a while, after the US central bank kept the target range for the federal funds rate unchanged.

The Federal Reserve had left key overnight interest rates steady in the 4.25 percent to 4.50 percent target range, with its chair Jerome Powell saying there would be no rush to cut them again.

Hong Kong's de-facto central bank said in response that the policy decision was "in line with market expectations".

"However, the pace of future rate cuts remains uncertain as it is dependent on US inflation and labour market data developments, the effect of previous rate cuts, as well as the impact of fiscal, economic and trade policies adopted by the new administration on economic activity," the authority said in a statement.

"Interest rates in Hong Kong might still remain at relatively high levels for some time, and the extent and pace of future US interest rate cuts are subject to considerable uncertainty."

The public should exercise caution when making property purchase, mortgage or other borrowing decisions, it said.

The authority added it would continue to closely monitor market developments and maintain monetary and financial stability.

It stressed that the city's financial and monetary markets have continued to operate in a smooth and orderly manner.

"Market liquidity condition has remained stable, and the Hong Kong dollar exchange rate stays steady," the authority said.