China delivered a surprise interest rate cut on Thursday to combat faltering growth, underlining concern among policymakers worldwide that the euro area's deepening crisis is threatening the health of the global economy.
The country's first rate cut since the depths of the global financial crisis in 2008/09 came after the Federal Reserve's second-highest official made a case for more policy easing in the United States, and followed an emergency conference call on Tuesday by the financial leaders of the Group of Seven industrialized nations to discuss Europe's debt crisis.
It was followed shortly after by comments from Fed Chairman Ben Bernanke that the U.S. central bank was prepared to take action to protect the financial system and U.S. economy.
Read more: China cuts rates as global economic crisis deepens
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