Budget improves long‑term outlook, but inflation fight left to the RBA

Australia’s long-term budget position has improved, strengthening investor confidence despite the latest Federal Budget doing little to ease near-term inflation, CommBank economists say.

Australian Treasurer Jim Chalmers speaking outside Parliament House in Canberra. Picture: AAP

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Commonwealth Bank Senior Economist Trent Saunders says prices in Australia’s housing market have continued to grow faster than expectations, but higher interest rates are expected to slow price growth over the next two years.

Australia faces growing pressure to balance its economic ties with China and strategic relationship with the United States. CommBank Economist Madison Cartwright explores trade, critical minerals, supply chain resilience and the future of the global economy.

Meet Ranil Boteju, CommBank’s Chief AI Officer, as he talks about returning to the bank, its approach to artificial intelligence, and why he believes AI will become embedded in everything we do.

2026 Federal Budget 

The 2026-27 Budget is one of the most talked-about in recent times. Read Commonwealth Bank's analysis.

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