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US narrowly agrees debt ceiling extension

US policymakers have agreed a 12-month extension of the country’s borrowing limit, removing the risk of another government shutdown for the short term.

The US House of Representatives - in which the opposition Republican party has a majority - agreed the extension by a narrow margin yesterday but the vote means the US will not risk defaulting on its obligations in 2014. The country’s current limit is due to be hit on February 27.

Republican speaker John Boehner raised the spectre of continued bickering over the US’s debt, claiming president Barack Obama “will not engage in our long-term spending problem”.

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The agreement will now pass to the Senate, which is controlled by Mr Obama’s Democrat party, for consideration.