Bangko Sentral downplays RRR cut concerns

Concerns over the reduction of bank reserve requirements are unfounded, the Bangko Sentral ng Pilipinas (BSP) said as it reiterated that the move did not represent an easing of monetary policy.

The Monetary Board earlier this month approved a one-percentage point adjustment to the 20 percent reserve requirement ratio (RRR), which will support the Bangko Sentral’s “shift toward a more market-based implementation of monetary policy as well as its broad financial market reform agenda.”