The observatory cancelled the Signal Number One at 11.20am on Thursday, as Ragasa gradually moved away from Hong Kong and was expected to weaken further.
Instead, the forecaster issued the Strong Monsoon Signal.
The observatory said that, due to the combined effects of Ragasa and the ridge of high pressure, there would still be occasional strong winds offshore and on high ground, as well as occasional squally showers and thunderstorms all over Hong Kong.
It added that seas would be rough with swells, so the public are advised to stay away from shorelines and refrain from engaging in water sports.
The announcement came as Secretary for Transport and Logistics Mable Chan said that, in view of the frequent typhoons and deluges seen over the summer, multiple government departments have prepared in advance and coordinate with each other.
For example, she said, the Fire Services Department is prepared to clear major obstructions with heavy machinery while the Highways Department has pre-stocked materials for urgent road repairs.
Chan also told a radio programme that the airport was speeding up flight handling as Ragasa affected more than 1,000 flights. She said the airport would get back to normal operations in one to two days.