Although last week's upgrades outnumbered downgrades, the amount of negative outlook and CreditWatch actions shows that the macroeconomic environment continues to weigh on credit quality. Central banks' guidance has sparked mixed views across regions, and U.S. markets are taking relatively more initiative. Higher-for-longer rates may be necessary to bring down inflation, and recession risk persists. However, rallies in global credit have extended as markets hold on to hope for a soft landing. This week we will focus on central bankers' announcements, including the RBA's policy decision, and continue to monitor spending on services, wage growth, credit quality, and liquidity.