Growth focus returns in face of yuan's devlauation, sources say

Policymakers may turn to old engines of growth in an attempt to address a rundown of foreign exchange reserves and ease downward pressure on the yuan, Reuters reported, citing unnamed sources involved in policy discussions. Beijing will channel funds mainly into infrastructure projects, including railways, roads and airports, and the central bank will cut interest rates and bank reserve requirements, policy insiders say, reigniting fears of reverting to an old stimulus playbook at odds with an erstwhile push toward consumption-driven growth. “We need to stabilize growth by stepping up fiscal policy support,” said an influential economist who advises the government.