The head of Hong Kong's de-facto central bank on Friday said the mainland's loose monetary policy will strengthen the SAR's position as an offshore renminbi hub.

Monetary Authority chief executive Eddie Yue's comments came after the People's Bank of China cut the reserve requirement ratio - or the amount of cash banks must hold as reserves - by half a percentage point.

That released about a trillion yuan in liquidity into the financial market.

Speaking at a forum on treasury markets, Yue said the move will lead to greater international use of the yuan.

"In the near to medium term, the accommodative monetary policy environment on the mainland is expected to continue, and that will provide incentives for banks and corporations to more frequently use RMB as a funding currency," he explained.

The chief economist for Greater China and North Asia at Standard Chartered, Ding Shuang, told the same event that he expected more mainland rate cuts.

"I think the rate cut cycle could last until the middle of next year, and may not necessarily follow the US rate cut cycle because ultimately it would depend on China's economic stabilisation," he explained.

Beijing has this week announced a slew of stimulus measures to boost its economy, with an aim of meeting its annual growth target of five percent.