RBA board member Donald McGauchie says the government's spending on stimulus measures and the $35.9bn NBN is forcing the bank to raise interest rates.

Mr McGauchie, the former Telstra chairman, yesterday delivered a stinging rebuke to Labor, accusing it of putting in place fiscal policies that worked directly against the bank's efforts to rein in inflation.

He said Reserve Bank governor Glenn Stevens had "tried to explain that there are real issues around the flexibility in the economy that is being wound back". "We are subsidising industries we shouldn't be subsidising, we are spending money on fiscal stimulus and other things we shouldn't be spending money on and that means higher interest rates than we would otherwise have," Mr McGauchie told The Australian. "He hasn't said it as bluntly as I have, but that's what's happening.

The result of the Labor stimulus plan was a handful of jobs saved during the GFC, with the hangover of large public debt, higher inflation, and higher interest rates that will drag down the economy for a decade.

Err... "Donald McGauchie"?

Isn't he the National Party drone who tried to scare Australians during the WIK TV ads run by the farmers mobs?

What else would a partisan political player say with an ALP government in power?

Did he get pushed onto the board by Howard, or Rudd?

Does he have anything original or useful to say though?

Further thoughts on this chump.

""We are subsidising industries we shouldn't be subsidising," like farmers perhaps? And the car industry? And tourism? And road transport? And mining?

"we are spending money on fiscal stimulus and other things we shouldn't be spending money on" bet he won't be saying that about the billions to be spent on the Qld floods will he?

"and that means higher interest rates than we would otherwise have," and what about the $30billion of tax free income poured into tax free religions? How much does that cost us all in higher mortgages?

TBC

Wasteful spending continues on the BER long after required, plus the billions on "green" cars that no one wanted, etc.

The biggest one yet is the NBN which is tipped to inflate the cost of network installation for everyone else.

P.S. flood relief is not considered stimulus.

"P.S. flood relief is not considered stimulus" tell that to Hardly Normal as his shops are flooded with whitegoods and new plasma screen buyers.

Why ever is flood relief not seen as a stimulation to the economy?

That is just pretending that a large burst of spending is not going to have a 'positive' effect on the nations books.

Never mind all the junk we have is imported following the likes of Don and Co insisting we move to a neo-liberal economy.

It's going to be tricky isn't it?

Coal caught up on the now wrecked but privatised QR system. Will you and Don be moaning when the new QR shareholders are exempted from paying their share of repair for their tracks, I wonder?

Quite right about the Toyota waste though. I'm waiting for the hybrid Jazz to come in from Thailand, or is it China?

Who cares, it's not made here anyway.

TBC while I admire your spirit, you are wasting your time.
Shadow only see,s from a conservative one side view point.
Farming for anything to use against any one other than Liberals he bought something ugly up from the bottom of a farm dam here.
That board has many members please explain why this quoted fool is one.
However TBC you understand what you are doing so hope you enjoy it, my one post policy in these muddy threads continues.