MANILA: The Philippine central bank is planning a substantial cut in the reserve requirement ratio (RRR) for banks this year, its governor said on Wednesday.

The RRR could be reduced substantially in 2024 with a further reduction in 2025, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona told a press conference.

In June 2023, the central bank reduced the RRR by 250 basis points to 9.5% for universal and commercial banks to 9.5%.

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The BSP wants deeper and more liquid markets, Remolona said.

But the central bank has no plans to issue longer-term securities beyond the existing 28- and 56-day tenors, he added.