Federal Reserve in new rate cut

The US Federal Reserve has cut its federal funds rate by 0.5 per cent again, taking the rate down to just one per cent.

It is the second time in October the federal open market committee has undertaken such a decision, announcing that it was making the move because of lower inflationary pressures and the need to bolster the US economy.

Earlier this month the American central bank had trimmed the rate by 0.5 per cent in concert with other central banks around the world, including the Bank of England.

Such a move may help those investing in the US property market, as it could make borrowing cheaper.

Earlier this week signs emerged that parts of the housing sector in the US may be recovering.

US department of housing and urban development figures revealed that the seasonally adjusted total of sales of new build single family homes was 464,000 in September, 2.7 per cent up on the August total of 452,000.