Australia’s ‘unbeatable’ credit rating: Moody’s

The ratings agency Moody’s on Thursday gave Australia’s credit rating an ‘A’ rating, a notch above ‘A-plus’ for sustainability, citing the country’s low inflation and low unemployment.

The agency also said the economy is on track for an expansion of more than 2 per cent this year and more than 3 per cent next year.

Australia’s economy expanded by 2.3 per cent in the year to the end of March, up from an expansion rate of just over 1 per cent a year ago.

Moody’s says the economy could grow by more than 4 per cent over the next 12 months.

Moody�s rating will remain unchanged for the next year, while the outlook for the economy has been upgraded to stable.

But analysts say the outlook has been revised down to stable from stable.

”A very strong growth forecast remains the case,” Moody’s Australia chief economist Andrew Wilson said in a statement.

”The economy is expected to grow faster than the forecast of a growth of 2 per, which would be consistent with a recovery in output, but also lower than the 3.4 per cent target we expect from the Reserve Bank.”

It is also unlikely that the growth forecast will be enough to maintain the outlook over the medium term, given the uncertainties in the labour market and the weakness of the Australian dollar, which has helped to raise the cost of borrowing.”

The credit rating agency expects growth to pick up in 2017 and 2018.

Moodys also upgraded Australia�s outlook for inflation to stable and for the Australian currency to return to the level it was at in January.

In a statement, Moody�t said it was satisfied with the government�s performance in achieving its economic growth target and that it was confident of achieving its inflation target by 2019.

”Australia has made some important steps in recent months to achieve a stronger fiscal consolidation and the Federal Government has made significant progress in delivering key measures, including a reduction in the cost-of-living adjustment (COLA), which has boosted economic activity,” Moody�ll said.

The agency also upgraded the outlook on the outlook of the national debt to stable, from negative, saying it was still more than four years away from a debt-to-GDP ratio below 60 per cent.

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