U.S. housing woes mount
The decision takes place against the release of 4th quarter GDP results showing that the world's largest economy slowed more than expected between October and December registering growth of just 0.6 per cent.
The commerce department data showed the economy slowing dramatically from 4.9 per cent in the preceding quarter. The figure makes for an annual growth rate of 2.2 per cent – the lowest growth in the U.S. since 2002.
The gloomy data pushed the Federal Reserve for a second reduction, which was widely expected. Last week it came with an emergency move to reduce the rate by 75 basis points. The benchmark rate now stands at 3 per cent.