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Would missing the debt rule lose the UK its AAA rating?

The European Commission this week added to warnings that the Chancellor might miss his target for debt as a share of GDP to be falling in 2015/16. One factor influencing whether Mr Osborne decides just to break the rule is how the rating agencies would react. We don’t think that a downgrade would be automatic. And even if the UK lost its AAA rating, the costs could be minimal.

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