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US interest rates rise: How will it affect UK?

The US Federal Reserve has raised interest rates by 0.25 percentage points - its first increase since 2006.

The move takes the range of rates banks offer to lend to each other overnight - the Federal Funds rate - to between 0.25% and 0.5%.

It is likely to cause ripples around the world, and could increase pressure on the UK to raise rates.

It could also mean higher borrowing costs for developing economies, many of which are already seeing slow growth.

Kamal Ahmed looks at what the move means for the the UK and the rest of the world.

  • 16 Dec 2015
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