China’s central bank cuts interest and increases relending

China’s central bank has cut the interest rate on its pledged supplementary lending (PSL) facility and increased quotas for targeted relending programs, reports Caixin. The move aims to channel more funds into infrastructure, technology and small businesses.

The People’s Bank of China (PBOC) lowered the one-year PSL rate by 0.25 of a percentage point to 1.5%. It also expanded the facility’s scope to support the construction of six infrastructure networks: logistics, water, new power grids, computing power, next-generation communications and urban underground pipelines.

The suite of structural monetary policy adjustments, announced Tuesday following a State Council pledge to roll out practical incremental policies, underscores Beijing’s strategy of directing targeted financing to key sectors to spur economic growth.