Slowing world growth and rising prices in the developing world will be targets of the May 13 federal budget, not just inflation, treasurer Wayne Swan says.

Speaking to Fairfax newspapers, Mr Swan said the IMF-World Bank meetings he attended in Washington this month had made him "even more acutely" aware of the risks international economic woes posed to the Australian economy.

The budget needed to "safeguard" Australia from such international conditions, including rising prices in the developing world, and slower world growth.

"In terms of the task that we face, it is finding that balance between tackling inflation on the one hand and safeguarding the country in terms of the fallout from international conditions," he said.

Mortgage holders were still not out of the woods yet, said Mr Swan.

Despite moderated domestic growth, the global credit crisis could still force banks to raise interest rates independently of the Reserve Bank of Australia, he said.

"Even if this (crisis) is stabilised, it is still going to take a long time to work its way through the system and across the globe," he said.

"The increased borrowing costs that our banks have faced in international markets will continue for some time."

'Don't be a scrooge'

But the federal opposition says the treasurer shouldn't be too Scrooge-like when he hands down the budget next month.

Opposition spokesman Malcolm Turnbull says Australia's economy will continue to grow .even though it's likely the United States will slide into recession.

He's told ABC radio Mr Swan should be careful not to overstate the impact of the global economic situation on Australia's strong economy.