The city's de facto central bank has cautioned that local borrowing costs will remain at a relatively high level for some time as it kept its key interest rate unchanged at 4.75 percent.

The move by the Hong Kong Monetary Authority (HKMA) on Thursday came in lockstep with the US Federal Reserve, which also left its target rate steady overnight in a range between 4.25 and 4.5 percent.

In response to the US rate policy decision, the HKMA said the move by the Fed was in line with market expectations and that the latest released "dot plot," a data chart providing a snapshot of the Fed's thinking, suggests that the Fed might reduce target rates by a total of 50 basis points by the end of the year.

However, it cautioned that the pace of US interest rate cuts remain quite uncertain due to recent changes in economic indicators and volatility in market expectations.

"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," it said in a statement, adding that future rate cuts depend on factors such as US inflation and labour market data, as well as fiscal and trade policies.

"The public should carefully assess and continue to manage the interest rate risk when making property purchase, mortgage or other borrowing decisions," it added.

Separately, it noted that Hong Kong's financial and monetary markets have continued to operate in a smooth and orderly manner with the liquidity condition remaining stable.

The HKMA added that it will continue to closely monitor market developments.

The city's major commercial banks have also followed suit, with HSBC and Bank of China (Hong Kong) keeping their rates at 5.25 percent and Standard Chartered maintaining its rate at 5.5 percent.