Bank of China Rate Rise
The People's Bank of China said it was raising benchmark rates by 25 basis points, taking one-year deposit rates to 2.5 percent and one-year lending rates to 5.56 percent.
The move reflects official concern at China's property market bubble and persistent inflation, with the consumer price index expected to rise by 3.6pc year-on-year in September.
"The interest rate rise is entirely outside of market expectations," said one one economist.
If there was ever any doubt about China's role in driving the stuttering global economic recovery, the impact was felt by markets across the board.
Oil and gold prices tumbled, stocks turned negative in Europe and the dollar jumped. This is the first rate rise since 2007