China cuts main interest rate

China has cut its main interest rate.

The reduction, of a quarter of one percent, will take effect from tomorrow and is aimed at boosting the economy.

It comes after two days of turmoil on stock markets.

Dan O'Brien, Chief Economist at the Institute of International and European Affairs says if there is a recession in China, it shouldn't lead to a recession in Europe.

"It will effect Ireland if there is a serious recession in China, but I think there's a good reason to think that it will not tip the rest of Europe, or all of Europe and America into recession," said Mr O'Brien.

"It will effect us, but probably not to the point tat it will send us into recession."

KEYWORDS: China, interest rate, cut

 

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