Has Jim Chalmers really poured fuel on the inflation fire? Don’t believe the hype

Headlines stoked fears of a ‘stimulatory’ budget, but you only need to look at the big banks and markets to see the reception was calm

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If you read or listen to much of the post-budget commentary you will be led to believe treasurer Jim Chalmers has just fanned the flames of inflation, making another interest rate hike more likely.

“Stimulatory budget could trigger another RBA rate rise,” ran the headline of one prominent article in the Australian Financial Review on Thursday. “Rates reality bites Jim’s spin,” was the front-page headline in the Australian.