Hong Kong raises base rate 25 basis points after US Fed hike

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* HKMA raises discount window rate to 1.75 pct from 1.50 pct

* Fed leaves rate outlook for coming years unchanged

HONG KONG, Dec 14 (Reuters) - The Hong Kong Monetary Authority (HKMA) raised the base rate charged through its overnight discount window by 25 basis points on Thursday to 1.75 percent after the U.S Federal Reserve raised interest rates by a quarter of a percentage point.

The Federal Reserve left its rate outlook of three additional rate increases in 2018 and 2019 unchanged even as policymakers projected a short-term jump in U.S. economic growth from the Trump administration's proposed tax cuts.

Hong Kong tracks Fed rate moves because its currency is pegged to the U.S. dollar.

The HKMA, the city's de facto central bank, sets its base rate through a formula that is 50 basis points above the prevailing U.S. Fed Funds Target or the average of the five-day moving averages of the overnight and one-month HIBORs (Hong Kong Inter-bank Offered Rate).

In June, the HKMA raised the base rate by 25 basis points to 1.50 percent and the central bank chief had warned that Hong Kong banks would gradually increase mortgage rates. However, major banks such as HSBC and Standard Chartered later left the city's prime lending rate unchanged.

The former British colony is the world's most expensive city for apartments, according to a UBS report.

Hong Kong private home prices edged up for the 12th straight month in October, extending a record-breaking run of consecutive monthly gains and adding to home ownership constraints.

Property prices have been shooting up since April 2016 due in part to a supply and demand imbalance. The city's leader, Carrie Lam, has pledged to address the problem by increasing land supply where possible.

(Reporting by Donny Kwok and Michelle Chen; Editing by Anne Marie Roantree and Sam Holmes)