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How would markets respond to a broken debt rule?

There is a significant chance that the Office for Budget Responsibility judges in the Autumn Statement that the Chancellor is likely to miss his secondary target for debt as a share of GDP to be falling in 2015/16. A look back to when the last Government broke its fiscal rules in 2008 suggests that, if the debt rule is projected to be missed, any adverse reaction in the gilt market would be small and short-lived.

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