The Hong Kong Monetary Authority (HKMA) announced its decision to keep the city’s base rate at 4 per cent on Thursday morning. “The future trend of US interest rates remains quite uncertain, which may influence the interest rate environment in Hong Kong,” the HKMA said. However, commercial banks can decide when and by how much to cut their prime and savings rates. AdvertisementThe decision of Hong Kong lenders came as no surprise to the market. Savings rates have been cut close to zero since October, while any reduction in the prime rate would erode banks’ net interest margin, affecting their profitability.