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

Analysts say election of Albanese government will not shift the dial' on economic forecasts

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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.