(Adds details on the reduction and context on past moves)
LIMA, June 10 (Reuters) - Peru's central bank on Tuesday said it is lowering the reserve requirement for commercial banks to 11.5 percent from 12 percent in an effort to boost lending and liquidity in the local sol currency.
The move will go into effect in July and is expected to free up 500 million soles ($179 million) at a time when the economy has slowed because of weakness in the mining sector.
The central bank, which will decide whether to hold or change the benchmark interest rate on Thursday, has lowered reserve requirements on banks several times in the past year.
As a result, the looser rules pumped 8.5 billion soles into the economy between June of last year and April, promoting broader use of the local currency, the central bank said in a statement.
($1 = 2.793 soles)
Reporting By Teresa Cespedes; Editing by Chris Reese and Diane Craft