MANILA -- The Bangko Sentral ng Pilipinas (BSP) is eyeing more cuts to the reserve requirement ratio (RRR) this year, said Governor Eli Remolona.

In an interview with ANC's Business Outlook, Remolona said the Philippines' current RRR--7 percent--is "still too high."

"We still have the one of the highest reserve requirement ratios in the region," he noted.

Asked where he wants the RRR to be by the end of his term, Remolona said, "Oh, maybe 5 percent? Before, well before the end of my term."

Asked if he sees this happening next year, the central bank chief said, "Possibly, yeah, possibly this year."

The BSP cut the RRR in October last year, releasing more than P300 billion into the banking system so that banks can lend more. 

More money for loans means lower intermediation costs and better prices for financial services.

The RRR sets the amount of funds that banks must hold against their deposit liabilities.

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--ANC, 27 January 2025