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Bangko Sentral cuts reserve requirement for banks

MANILA – The Bangko Sentral ng Pilipinas will cut the reserve ratio requirement for banks by 200 basis points in three tranches starting on May 31, Governor Benjamin Diokno said Thursday.

A 100-basis points cut will be effective by May 31, followed by a 50 basis points cuts each on June 28 and July 26.

“This new policy will apply to universal and commercial banks only. For the other types of banks, the cut In RRR will be considered in the next monetary board meeting,” Diokno said in a statement.

The BSP cut the benchmark interest rate by 25 basis points last May 9, signaling the start of monetary policy easing after the economy expanded at its slowest pace in 4 years.

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