Mark Carney: China slowdown unlikely to stop UK interest rate rise

Bank of England governor tells meeting of central bank bosses in Jackson Hole, Wyoming, that direct exposure of economy to China is relatively modest

China's economic problems are unlikely to derail plans to raise interest rates in the UK, Bank of England governor Mark Carney has claimed. The Chinese slowdown rattled investor confidence this week, prompting expectations rate increases might be taken off the agenda in both the US and UK, where the cost of borrowing has remained at 0.5% for more than six years.

But speaking at an annual get-together of central bank bosses in Jackson Hole, Wyoming, Carney said the current concerns over China were outweighed by the "ongoing domestic strength" of the UK market, credible policy and an "increasingly robust financial system". "The direct exposure of the UK economy to China is relatively modest," he told delegates. "Developments in China are unlikely to change the process of rate increases."

Related: UK interest rates on hold until autumn 2016, City predicts