Hong Kong will maintain its 2025 full-year economic growth forecast at 2% to 3%, The Standard reported Thursday, citing the city's Financial Secretary Paul Chan.

While lower rates will ease pressure on businesses and homeowners, Chan said Hong Kong remains vulnerable to factors beyond its control, including tariffs and US protectionist policies, according to the report.

Speaking after the Policy Address, Chan noted the city's interest rate moves in line with the US due to the currency peg, but are adjusted based on local liquidity conditions.

He reportedly said the prolonged high-rate environment is giving way to a more accommodative outlook, though the pace of easing depends on global developments.

Chan also stressed Hong Kong's role as the largest offshore yuan hub, with deposits exceeding 1 trillion yuan. The government plans to expand yuan-denominated bond issuance and may consider settling expenditure in yuan, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)