Lowering the Reserve Requirement Ratio (RRR) refers to a central bank policy where it reduces the proportion of deposits that commercial banks must hold as reserves with the central bank. This action releases more liquidity into the market and is typically used to stimulate economic growth or address economic downturns.

Detailed Explanation:
Reserve Requirement: This is the portion of depositors' balances that commercial banks must keep on hand with the central bank. Its primary purpose is to ensure that banks have enough liquidity to meet withdrawal demands and to prevent financial risk.
Reserve Requirement Ratio (RRR): This is the percentage of a bank's total deposits that must be held as reserves at the central bank. For example, if a bank has $1 million in deposits and the reserve requirement is 10%, the bank must keep $100,000 with the central bank, while the remaining $900,000 can be used for loans or investments.

Reducing the RRR can indeed boost economic activity by allowing banks to lend more. However, it's crucial to balance this with the risk of inflation and ensure that the increased liquidity is channeled into productive investments.