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Policy uncertainty from PM change could add to Australia's economic challenges: Moody's

Xinhua, September 15, 2015 Adjust font size:

Global credit ratings agency Moody 's said it will be harder for Australia to reform its budget as the change of Australia's leadership leads to policy uncertainty.

Moody's Investors Service said though the removal of Tony Abbott as prime minister, replaced by Malcolm Turnbull, is part of the democratic process and doesn't pose a risk to Australia's credit rating, it comes at a critical time when strong multi-year growth has come to an end.

"Without a return to strong growth, fiscal goals will be harder to meet," Moody's associate managing director Atsi Sheth said in a statement on Tuesday

If the change leads to political and policy uncertainty or dampens sentiment, it would add to the challenges already facing Australia's economy.

Australian industry bodies have welcomed the arrival of Turnbull who has a track record in business, warming to the idea that the former Goldman Sachs investment banker can use a more collegiate and co-operative leadership style to push forward economic reforms.

Local analysts have said Turnbull could lift Australian consumer confidence though his popularity with the voters and articulating the need for reform, giving business a much needed boost.

A snap SMS Morgan poll on Tuesday showed 70 percent of voters felt Turnbull was the better prime minister, well ahead of 24 percent for Labor leader Bill Shorten.

Turnbull was sworn in as Australia's prime minister on Tuesday. Endi