Since the last Monetary Policy Report, the global economy—still grappling with the implications of tariffs—was further unsettled by the emergence of new tensions. The US Supreme Court’s decision in February 2026 to repeal previously imposed tariffs—and the subsequent proposal of a new 10 per cent tariff propelled uncertainty. In addition, the escalation of geopolitical tensions arising from the US-Israel conflict with Iran in late February 2026, heightened global economic uncertainty.