RBA assistant governor Debelle says that Euro Sovereign debt woes have had no impact on Australia but they may have some influence over the RBA rate decision next week. The last time the RBA paused, they cited global uncertainties as the predominant reason. With Greece and Portugal getting downgraded overnight and with the Chinese composite falling significantly in the last few days, these may be strong enough reasons to convince the RBA to pause. Glenn Stevens has said that rates are now close to normal. If the CPI data gives no reason to assume an acceleration in the rate of inflation then we can pretty much write down ‘pause’ for next week.