JAKARTA - China is expanding its economic stimulus measures by cutting a financing rate and providing mortgage interest subsidies for first-time homebuyers. The People's Bank of China (PBOC) on Tuesday cut the interest rate on pledged supplementary lending (PSL) by 25 basis points. The one-year PSL rate was lowered to 1.5% from 1.75%. The PBOC also expanded the scope of the PSL facility to support investment in water infrastructure, power grids, computing, communications, urban pipelines and logistics. "China's latest policy measures indicate a more coordinated effort to support growth by boosting both investment and household demand," Hao Zhou, an analyst at Hong Kong-based Guotai Haitong Securities, said, as quoted by Reuters .
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