China will boost rail spending for a third time in three months at the same time the central bank is injecting the financial system with cash, among other signs the government is looking to stimulate the economy, Bloomberg reported. Railway spending will hit US$78 billion this year, a 7.6% increase on last year, consistent with a July pledge from Premier Wen Jiabao to promote flagging economic growth with infrastructure investment. Beijing could also give full value-added tax rebates to exporters in response to declining trade growth, people with direct knowledge of the plan said. If exports continue to decline, a full rebate on the 17% VAT could be returned to exporters. Current rebates, initiated in 2008 at the onset of the global financial crisis, are set between 13% and 15%. To ease a cash shortage, the People’s Bank of China separately conducted US$8.7 billion in seven-day reverse repurchase operations Tuesday, dropping China’s benchmark money-market rate to a six-month low.