A reasonably positive environment persisted on global equity markets last week, and bond yields edged downwards in response to relatively positive US data. Even so, there was still some trepidation regarding the implications of a tariff war. Domestically, a reduction in the repo rate and the release of a scenario study of potential inflation and interest rates, should the inflation target be reduced, encouraged the belief that interest rates have further to decline and could do so materially if a lower inflation target were acceded to. The primary focus internationally this coming week is the assessment of the extent to which the turmoil surrounding tariffs has impacted US jobs, whilst domestically, Q1 GDP data, vehicle sales and manufacturing sentiment will be closely watched.