The point at which UK interest rates begin to rise will be "put even further back" as countries around the world respond to China's slowing economy, the former chairman of the Financial Services Authority has said.
Crossbench peer Lord Turner of Ecchinswell predicted the Chinese slowdown would "push back" the point where the Bank of England puts up interest rates.
Speaking on BBC Radio 4's Today Programme, he said:
I think what will happen as the inevitable consequence of the China slowdown, and the most important bit here is the very big slowdown of the economy rather than the fall in the equity prices, I think in response to that we will see that the point at which interest rates rise will be put even further back.
Leading economics experts have told ITV News they believe any interest rate rise in the UK could now be put back even further.
The world's stock markets continued to show nerves over Chinese instability with the FTSE 100 plunging in morning trading.
China’s new policy, allowing shares to drop sharply has ended after the People’s Bank of China cut interest rates by a quarter of a point.