LOOKING INWARD

China, which has been a driver of global growth till now, has been the reason for blood-letting in equities and currencies worldwide recently. It is now looking towards home for corrective measures.

BOOSTER DOSE FOR HOME CONSUMPTION

MOVE

Bank lending and deposit rates cut by 25 basis points each, effective Thursday. This is the fifth since Nov Cut in reserve requirement ratio by 50 bps for big banks and 300 bps for leasing and auto fin cos, effective Sept 6 Allowing pension funds to invest in stock market (30% of net assets). About $100 bn is expected to flow in A 4.65% devaluation in its currency, yuan two weeks ago in 2 stages

AIM

Aid consumer spending and boost domestic consumption Increase liquidity in the market Shore up investors’ confidence and stabilise the market Boost exports. Devaluation makes Chinese goods cheaper in global market

CHINA’S SHAKY ECONOMICS

Decline in factory output in August, the most in six-and-a-half years Fall in exports to 8.3% in July, the lowest in 4 months Stock market collapse. The Shanghai Composite Index fell 7.63% on Tuesday after Monday’s 8.49% loss, the worst in 8 years

INDIA SHINING, STILL

Moody’s says economic potential ‘high’, but India needs to push reforms

RBI rate cut hinges on yuan devaluation, US Fed: DBS

Brent crude stood at $43.37 per barrel, still a six-year low

The Indian crude basket, which mirrors brent, fell to a low $42.97 per barrel