US central bank set to cut rates

The US central bank is expected to cut interest rates by a quarter percentage point to 4.25% when Federal Reserve officials meet on Tuesday.

Analysts predict the Fed will cut rates for the third time in 2007 to boost economic growth and ease the impact of the housing crisis and credit crunch.

But a half point cut is less likely, analysts say, given that more jobs were created in November than expected.

The meeting on Tuesday will be the final one of the year.

The bank is expected to make its announcement on interest rates at 1915 GMT.