MANILA - The Bangko Sentral ng Pilipinas said Tuesday it further reduced the reserve requirement ratio for banks, pumping more liquidity into the system as the economy reeled from the coronavirus pandemic.

The 200 basis point RRR cut will take effect on March, 30, the BSP said in a statement. The monetary authority cut the benchmark interest rate last week by 50 basis points.

The cut will allow the BSP to "promptly address any possible liquidity strain," Governor Benjamin Diokno said.

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"The RR cut is intended to calm the markets and to encourage banks to continue lending to both retail and corporate sectors. This will ensure sufficient domestic liquidity in support of economic activity amidst this global pandemic due to the coronavirus Disease (COVID-19)," the BSP said.

Philippine banks have ensured the public that enough cash would be available during the month-long lockdown which is in effect until April 12. Diokno urged the public to use e-payments and digital banking to reduce the risk of COVID-19 infection.

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-- with a report from Michelle Ong, ABS-CBN News