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The Guardian - AU
The Guardian - AU
Business
Peter Hannam

Market response to Australia’s new Labor government will be ‘muted’, economists say

Reserve Bank frontage
Economists predict the Reserve Bank will continue to lift Australia’s cash rate, reaching 1.5% by the end of the year. Photograph: Brook Mitchell/Getty Images

Labor’s incoming government faces a number of economic problems from rising inflation to slowing economic growth, but economists and ratings agencies say those potential storms can be weathered and markets will take it in their stride.

With investors pricing in a change of government in Saturday’s federal election, the response in stock and other markets will be “muted”, Gareth Aird, the Commonwealth bank’s chief economist, predicted.

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