HONG KONG, Dec 14 Reuters The Hong Kong Monetary Authority HKMA on Thursday left its base rate charged through the overnight discount window unchanged at 5.75, tracking a move by the U.S. Federal Reserve that kept rates steady.

HSBC Holdings 0005.HK also said it kept its best lending rate in Hong Kong unchanged at 5.875.

The U.S. central bank left interest rates unchanged on Wednesday and Fed chief Jerome Powell said the historic tightening of monetary policy is likely over as inflation falls faster than expected and with a discussion of cuts in borrowing costs coming into view.

HKMA said the market generally interpreted the Fed39;s rate decision as interest rates nearing the peak, with a slightly larger extent of rate cuts next year than previously expected.

There remains uncertainty in the interest rate path and the high interest rate environment may last for some time, HKMA said in a statement, adding the city39;s financial and monetary markets continue to operate in a smooth and orderly manner.

The Hong Kong dollar exchange rate remains stable, and the Hong Kong dollar interbank rates might remain high for some time, HKMA said, urging the public to manage the relevant risks when making decisions on property purchases, mortgages or other borrowing.

Hong Kong39;s monetary policy moves in lockstep with the United States as the city39;s currency is pegged to the greenback in a tight range of 7.757.85 per dollar.

Reporting by Donny Kwok; Editing by Jacqueline Wong…