CBA says Australian budget not inflationary, and that the RBA cash rate has peaked

Via a Commonwealth Bank of Australia note on their Reserve Bank of Australia outlook.

This is the summary:

• Our assessment is that the 2023 Commonwealth Budget does not add to inflationary pressures in the economy.
• As such, we have not changed our forecast profile for inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term or our call on the RBA.
• Our central scenario puts the current 3.85% as the peak in the cash rate, while the near-term risk sits with another rate hike.
• Despite the 2023 Budget’s modest and targeted 'cost of living relief’, the budgets of many home borrowers and renters will be under considerable strain over the coming year.
• We continue to expect 50bp of rate cuts in Q4 23 and a further 75bp of easing in 2024 that would take the cash rate to 2.6% -a more neutral setting.
• The risk to the timing of the commencement of the easing cycle sits with the first cut arriving in Q1 24 rather than late 2023.
• The upcoming Fair Work Commission(FWC)decision on the national minimum wage will be critical to the outlook for wages growth and by extension inflation and the monetary policy outlook.

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CBA graph:

ps. I think the above graph is of 3 scenarios CBA have for the RBA.

The middle projection is CBA base case. I could be wrong on this, I may have misinterpreted the graph.