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MANILA, Sept 27 (Reuters) - The Philippine central bank announced a 100 basis points cut in the banks' reserve requirement ratio on Friday, in line with its medium-term plan to bring it to a single digit level.
The cut, which follows a 200 bps phased reduction in the RRR from May to July, will take effect in November, the Bangko Sentral ng Pilipinas (BSP) said in a statement, confirming earlier reporting by Reuters.
Central bank Governor Benjamin Diokno said the RRR cut "is in line with the BSP's broad financial sector reform agenda to promote a more efficient financial system by lowering financial intermediation costs".
Diokno has repeatedly said the RRR ratio will be at a single digit level by the time he ends his term as governor in 2023.
On Thursday, the central bank slashed its benchmark interest rate for a third time this year to bolster a slowing economy against the risk of weakening global growth.
Diokno said the adjustment in the RRR is also aimed at increasing domestic liquidity to support credit growth.
(Reporting by Karen Lema and Enrico dela Cruz Editing by Raissa Kasolowsky and Alison Williams)