US Interest Rates Come Down Again

The US Federal Reserve has cut interest rates for the third time in four months this evening to 4.25%.

Analysts thought a reduction of 0.25% was the most likely option that the American central bank would take when its officials met for the last time this year.

The latest cut is aimed at further boosting economic growth and easing the impact of the housing crisis and credit crunch.

The Federal Reserve has lowered rates twice already this year - from 5.25% to 4.75% in September and to 4.5% last month.

The September move downwards was the first for four years.