The two new faces who will influence your mortgage

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

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

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

Professor Renée Fry-McKibbin is joining the RBA's new interest rate-setting board. (Mick Tsikas/AAP PHOTOS)

Professor Fry-McKibbin formed part of the three-person review panel and has held leadership positions in the economic and social sciences community, both in Australia and the United Kingdom.

Ms Baker, who was also formerly deputy chair of the Australian Banking Association, brings a deep understanding of Australia's financial system and an important regional perspective to the role, the treasurer said.

The coalition has called for the monetary policy board to be made up entirely of members on the current Reserve Bank board to avoid the possibility of the government stacking it with pro-Labor appointees.

After delays getting the RBA reforms through parliament, Labor finally sealed a deal with the Greens after agreeing to maintain the government's powers to override the bank's rate decisions.

Former Business Council of Australia CEO Jennifer Westacott, former 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 one of the two boards.