The huge change coming to the Reserve Bank

The existing Reserve Bank board is expected to lose the power to set interest rates, with a separate board of monetary policy experts likely to be appointed under a massive shake-up.

Senior economics correspondent for The Age, Shane Wright, says Australia’s central banking system was established during the Great Depression, and has remained unchanged while other countries have advanced.

“The rest of the world in terms of central banking has moved a long way towards using specialists who absolutely know how monetary policy works,” he told Ross and Russel.

Press PLAY below to find out more about the shake up

Treasurer Jim Chalmers will today release an independent review of the RBA.

The review makes a total of 51 recommendations, including a recommendation two boards are created.

It suggests the current board should continue day-to-day operations, while a new board should manage the cash rate.

The Federal Government has backed all recommendations made by the review.