US goes big with first interest rate cut in four years

The US central bank has cut interest rates by more than expected in its first reduction in over four years.

The Federal Reserve said it would lower the target for its key lending rate by 0.5 percentage points, to the range of 4.75%-5%.

The widely expected cut is bigger than many analysts had predicted just a week ago, and comes as officials have noted increasing concern about rising unemployment rates.

The move will bring relief to borrowers across the US, who have been facing interest rates hovering at the highest levels in more than two decades.

This is a developing story. More updates to follow.