MANILA, May 16 (Reuters) - The Philippine central bank announced on Thursday a two percentage point cut in the reserve requirement ratio (RRR) for banks, which will take effect in three stages between May and July.
The first 100 basis point cut in RRR will take effect on May 31, another 50 basis point cut on June 28 and last 50 basis point cut on July 26, Governor Benjamin Diokno said in a text message. The reduction will bring the ratio to 16 percent. The move is expected to free up around 190 billion Philippine pesos ($3.62 billion) of additional liquidity into the financial system, the central bank said.
$1 = 52.5200 Philippine pesos Reporting by Karen Lema; Editing by Jacqueline Wong