China's economy, key to global growth, may be slowing at a faster rate than forecast and coupled with plummeting oil prices, means Britain must continue with its austerity policies, UK Chancellor of the Exchequer George Osborne said on Thursday, according to the Financial Times.

In a speech in Cardiff, Wales, Osborne said he was worried that there was a growing air of complacency, adding "Anyone who thinks it's mission accomplished is making a grave mistake."

He said economic problems in China, Brazil and Russia, coupled with sharp falls in commodity prices, the plummeting price of oil, and renewed turmoil in the Middle East meant the global economy was under threat, the FT reported.

The FT said the decline in China's currency, the renminbi, raised the prospect of further intervention by the People's Bank of China in order to protect the exchange rate policy.

To contact the reporter: chris@mail.chinadailyuk.com