(Bloomberg) -- The Philippine central bank will cut lenders’ reserve requirement ratio by 200 basis points, Governor Benjamin Diokno said, a day after announcing a plan to buy 300 billion pesos ($5.86 billion) worth of government debt.
“The reduction is intended to calm the financial markets and encourage banks to continue lending to both the retail and corporate sectors,” Diokno said in a mobile phone message.
The cut, which will bring big banks’ required reserve ratio to 12%, will take effect on March 30, he said.
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