Hong Kong's monetary authority kept its key interest rate unchanged in lockstep with the US Federal Reserve, taking a breather after last year's three cuts, in the first monetary policy decision of 2025.

The Hong Kong Monetary Authority left its base rate unchanged at 4.75% on Thursday, tracking a move by the U.S. Federal Reserve to keep rates steady. Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.

The Hong Kong Monetary Authority (HKMA) maintained its base rate at 4.75% on Thursday, aligning with the U.S. Federal Reserves decision to hold rates steady. Hong Kongs monetary policy follows U.S. interest rate moves

Mortgages shrank by 21.1 per cent last month to 6,306 applications from November, according to a statement by the Hong Kong Monetary Authority (HKMA).