Hong Kong’s Monetary Authority (HKMA) on Thursday left its base rate unchanged after the US Federal Reserve held interest rates steady at its first policy meeting under new chairman Kevin Warsh, but US policymakers expect an interest rate rise later this year due to worries of inflationary pressure.

The HKMA kept its base rate at 4 per cent. Hours earlier, the Federal Reserve maintained its target range at 3.5 per cent to 3.75 per cent following the fourth meeting of the Federal Open Market Committee (FOMC) this year.

The US S&P 500 Index fell 1.2 per cent overnight after the Fed’s quarterly projections indicated nine Fed officials now anticipate an increase in interest rates by the end of this year, while an updated policy statement removed language that had been used to flag the likelihood of a further interest rate cut this year.

“I can’t give you any forward guidance about what we’re going to do ⁠next. The good news is we’ll be meeting in six weeks,” Warsh said at a press conference after chairing his first FOMC meeting.

He succeeded Jerome Powell, who remains a member of the Federal Reserve Board of Governors. He did not give any forward guidance like his predecessor.

The decision was widely expected. According to CME FedWatch data on Wednesday, 99.6 per cent of traders anticipated no change, while the remainder expected an increase of 0.25 percentage points.