Record of discussion of meeting of Exchange Fund Advisory Committee Currency Board Sub-Committee held on January 12, 2026

Record of discussion of meeting of Exchange Fund Advisory Committee Currency Board Sub-Committee held on January 12, 2026————————————————————————————– 
Monitoring of Risks and Vulnerabilities
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     The Sub-Committee noted that in the US, while the trade truce and government reopening eased market jitters, the economy continued to face challenges stemming from a “K-shaped” consumption divergence, concerns over the sustainability of the artificial intelligence (AI) boom, and a weakening labour market. In Asia, while export diversification and the AI boom had so far supported economic growth, lingering trade policy uncertainty and potentially large propagation effects of the US trans-shipment tariffs continued to pose headwinds for the region’s economic outlook.——————————————————————
     The Sub-Committee noted a paper that examined global economic outlook and monetary policy environment, and the implications for Hong Kong’s financial and monetary conditions. 
Issued at HKT 17:20

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