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World

China market slump: Central bank cuts interest rates

August 25, 2015 6:50 pm

The People’s Bank of China cut its key lending rate by 0.25 percentage points to 4.6% in an effort to calm stock markets after two days of turmoil.

It is the fifth interest rate cut since November and will take effect on Wednesday.

The move has boosted global share prices further, with Wall Street’s Dow Jones index opening more than 1.7% higher after the move.

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By the close of European trading, London’s FTSE 100 was up 3%, while Germany’s Dax gained 5% and the Paris Cac rose by 4.1%.

Other European markets, including Lisbon, Madrid, Moscow and Milan, all closed sharply higher.

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