RBA Maintains Pause - Door Clearly Open For Future Cuts

The statement from the RBA reflected some of the rays of hope we have been starting to see. They did however leave the door firmly open for further easings down the track:

Nonetheless, the prospect of inflation declining over the medium term suggests that scope remains for some further easing of monetary policy, if needed. In assessing how it might use that scope, the Board will continue to monitor how economic and financial conditions unfold, and how they impinge on prospects for a sustainable recovery in economic activity.

The economic environment is still very precarious and anything could happen. The impact of the GM bankruptcy clearly illustrates this by taking a number of very shaky CDOs closer to the brink. Parts companies affected by the bankruptcy may also collapse impacting on other CDOs. The further domino effect of these CDO becoming worthless is anyones guess.