Standard Chartered Global Research said Hong Kong's economy will maintain strong momentum this year, with the outlook likely supported by related financial activities in mainland China, the artificial intelligence supercycle and the recovery of the local economy, sufficient to offset the impact of geopolitical headwinds. The bank raised its 2026 Hong Kong economic growth forecast to 4.3% from 3.2%.In view of rising energy prices and wages, the bank also lifted its headline CPI inflation forecast to 2.1% from 1.5%.In addition, Standard Chartered continues to expect the Hong Kong Interbank Offered Rate (HIBOR) to rise further. It projects one-month HIBOR to hover at around 2.8% in 2H26, while three-month HIBOR is expected to stay at about 3%. This is because the bank expects the Federal Reserve to keep interest rates unchanged, while robust financing activities and a rebound in the property market will support demand for the HKD. (su/da)
AASTOCKS Financial News