A leadership challenge has brought Australia a new Prime Minister. Kevin Rudd, a former Prime Minister, challenged Julia Gillard in an internal party contest and won. Both are from the left-leaning and current governing Australian Labor Party. Kevin Rudd assumes the prime ministership, but is required to hold a Federal election before 30 November. Economic implications are on the margin but the leadership change may lift business confidence and could have implications for the timing of any further near-term RBA move, given their desire to stay out of the political spotlight.
The political implications are that the forthcoming election will likely be more closely contested, given polls taken prior to the leadership change placed Kevin Rudd as significantly more popular than Julia Gillard.