Central Banks
Philippines Plans Large RRR Cut This Year After Easing Pivot
- Bangko Sentral chief says to focus on own data, not on Fed
- BSP last cut banks’ reserve requirement ratio in June 2023
Eli Remolona
Photographer: Lisa Marie David/BloombergThis article is for subscribers only.
The Philippine central bank is looking to cut banks’ reserve requirement ratio significantly before yearend, according to Governor Eli Remolona, a move that’s expected to unleash billions of pesos into the financial system.
“We will reduce the reserve requirement substantially this year, and then there may be further reductions by next year,” Remolona said at a media briefing in Manila on Wednesday. He didn’t specify the extent of cuts in the RRR, currently at 9.5% of deposits that bigger banks must set aside in reserve.