Main stories in ABC's World Today

AAP General News (Australia)
08-18-2006
Main stories in ABC's World Today

SYDNEY, Aug 18 AAP - Main stories in ABC's World Today:

* Expect another interest rate rise is the message from the governor of the Reserve
Bank Ian Macfarlane. Mr Macfarlane was addressing the House of Representatives economics
committee in Sydney today in his final appearance before the inquiry as Reserve Bank governor.

As well as the bad news for homebuyers, he's warned that the combined effect of federal
tax cuts and state government spending could cause more inflation worries.

* In Melbourne, 200 workers at a car parts manufacturer have been stood down this morning
in a company collapse that threatens Australia's car industry. Ajax Fasteners, which supplies
Ford and Holden, went into administration last week, but it was hoped a rescue package
involving contributions from a number of companies would keep it afloat. But talks collapsed
overnight and the company has ceased trading.

* The Australian retailing giant Coles Myer is remaining tightlipped about its possible
sale to a consortium of private equity firms. The speculation has pushed the company's
share price sharply higher again today after they gained 12 per cent yesterday.

AAP kaj/was

KEYWORD: MONITOR WORLD TODAY

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