The women who could soon influence your mortgage

An economics professor and a regional bank chief will have a say on Australians' mortgage rates after the biggest shake-up to the operations of the Reserve Bank of Australia in decades.

Australian National University professor Renee Fry-McKibbin and former Bendigo and Adelaide Bank boss Marnie Baker will make up the RBA's new specialist rate-setting board alongside four continuing board members, Treasurer Jim Chalmers announced.

The central bank's board was split in two with its rate-setting powers assumed by the monetary policy board while a separate one will be responsible for the bank's governance, bringing it in line with international counterparts.

Dr Chalmers said Prof Fry-McKibbin was one of Australia's finest economists and Ms Baker's appointment added valuable financial sector experience to the board.

"I don't think any objective observer looking at the two new appointments to the monetary policy board, or indeed four new appointments to the governance board, would consider these people to be anything other than perfectly qualified people with the optimal blend of skills and experience," he told reporters on Monday.

The overhaul of the RBA comes after an independent review of the central bank's operations criticised the current board's decision-making and ability to hold the governor to account.

Other measures recommended by the review have been implemented, including regular press conferences by the governor following rate decisions and reducing the annual number of board meetings from 11 to eight.

Prof Fry-McKibbin formed part of the three-person review panel and has held leadership positions in the economic and social sciences community in Australia and the UK.

Ms Baker, a former deputy chair of the Australian Banking Association, brings a deep understanding of the financial system and an important regional perspective, Dr Chalmers said.

Shadow treasurer Angus Taylor accused the government of "sacking and stacking" the board, but refused to say the individual appointees he disagreed with.

"With interest rates having risen 12 times over the last two-and-a-half years and stubborn core inflation eating away at Australians' living standards, it was critical to maintain continuity on the Reserve Bank's rate setting board by carrying over all existing appointees," he said.

Prof Fry-McKibbin has previously called for the government to transfer all six current external board members to the rate-setting board to maintain bipartisan support for the reforms.

Former Business Council of Australia CEO Jennifer Westacott, ex-Telstra CEO David Thodey, business leader Danny Gilbert and banking executive Swati Dave are the new faces to join the governance board.

All members of the current Reserve Bank board will continue to serve on either of the two boards.

Carol Schwartz and Elana Rubin will join the governance board, while Alison Watkins, Ian Harper, Carolyn Hewson and Iain Ross will join the monetary policy board.

Governor Michele Bullock, who formed part of the selection panel, said she was looking forward to working with Ms Baker and Prof Fry-McKibbin.

"Their expertise and insights will be vital as we continue our efforts to bring inflation back to target," Ms Bullock said.

She remains chair of both boards.

Deputy Governor Andrew Hauser will sit on both boards, while Treasury Secretary Steven Kennedy retains his position on the monetary policy board.

RBA chief operating officer Susan Woods will join the governance board.

The new board members will start in March, following the RBA's next interest rate meeting in February.