THE Bangko Sentral ng Pilipinas (BSP) on Friday announced reductions in bank reserve requirements, set to take effect on October 25, with further cuts possible given the current inflation outlook.

The reserve requirement ratios (RRR) for universal and commercial banks, and nonbank financial institutions with quasi-banking functions (NBQBs) will be slashed by 250 basis points (bps) to 7.0 percent, 200 points to 4.0 percent for digital banks, and 100 bps to 1.0 percent and zero percent, respectively, for thrift banks, and rural banks and cooperative banks.