Sydney, June 25, 2026, 02:03 AEST
- Commonwealth Bank finished at A$164.79 on Wednesday, gaining 0.35%. The stock reached as high as A$167.39 during the session.
- Annual inflation slowed to 4.0% in May, while the trimmed mean went up to 3.6%.
- The next big rate test is Australian labour data, out Thursday at 11:30 AEST.
Commonwealth Bank of Australia shares ticked up Wednesday, with mixed inflation figures leaving the door open for another RBA rate hike. ASX cash market was shut at the dateline, with trading set to pick up as usual Thursday.
CBA finished up 58 cents at A$164.79. The stock opened at A$166.38 and touched A$167.39 during the session. Shares are still down around 10.5% for the financial year so far.
S&P/ASX 200 closed up 0.24% at 8,808.4. Westpac climbed 0.85%, National Australia Bank rose 1.1%. CBA lagged both banks.
Australia’s consumer prices gained 4.0% year-on-year in May, the Australian Bureau of Statistics said. That’s slower than the 4.2% pace in April. But the trimmed mean, which strips out big moves, was up to 3.6% from 3.4%.
Annual CPI inflation slowed to 4.0 per cent in May from 4.2 per cent in April, according to ABS prices official Rachael McCririck.
“Lower fuel prices helped bring headline inflation down, but underlying inflation is still proving sticky,” CBA Senior Economist Trent Saunders said. CBA sees the RBA keeping rates steady for the time being, though it flagged that another hike is still on the table if price pressure hangs on. CommBank
RBA Deputy Governor Andrew Hauser said rates went up because demand outpaced supply. The central bank’s cash rate stands at 4.35% after three hikes this year.
Hauser said inflation in Australia is “far too high” and the central bank still has work left to bring it down. Reuters
CBA, holding close to a quarter of Australia’s mortgage market, leads Westpac and NAB. The bank’s position means interest rates, activity in the housing market, and borrower pressure all go straight to its earnings story.
CBA posted a cash profit of around A$2.7 billion for the quarter in its May trading update. Net interest income rose 1%. The bank put another A$200 million aside for potential loan losses. Bad-debt charges jumped to A$316 million from A$223 million a year ago.
But a higher rate environment is a double-edged sword. More hikes could drag on mortgage demand and add pressure for borrowers. On the flip side, a bigger employment slowdown could force the RBA to pause, but that would also hurt loan growth. The central bank kept rates steady last week but warned it may still tighten again.
May jobs data from the ABS is due at 11:30 AEST on Thursday. Unemployment was 4.5% in April, the highest level since November 2021 after jobs dropped by 18,600.
