Philippines Delivers Jumbo Reserve Ratio Cut After Fed Move
- RRR cut seen to free up at least $4.5 billion to spur economy
- Banking stocks led by BPI, Metrobank jumped on the decision
The Bangko Sentral ng Pilipinas headquarters complex in Manila.
Photographer: SeongJoon Cho/BloombergThe Philippine central bank will slash the reserve requirement ratio for larger banks, injecting about 250 billion pesos ($4.5 billion) into the economy.
The Bangko Sentral ng Pilipinas said on Friday that the RRR for universal and commercial banks will be cut by 250 basis points to 7% of deposits from 9.5%. The reduction in the amount that lenders must set aside in reserve, effective October 25, was intended to lower intermediation costs and promote better pricing for financial services, it said in a statement.