The appointment of a Reserve Bank governor is about enhancing its independence, Treasurer Jim Chalmers says.
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Dr Chalmers will soon take to federal cabinet a recommendation regarding the future of central bank governor Philip Lowe beyond the expiry of his seven-year term in September.
The RBA is also set for an internal shake-up following a landmark review.
The treasurer said he had consulted with opposition counterpart Angus Taylor and would work with cabinet colleagues to make the best decision for the nation.
"The Reserve Bank review and the appointment of a governor is not about undermining the independence of the Reserve Bank - it's about enhancing it," he told reporters in Melbourne on Wednesday.
It is still possible Dr Lowe could have his term extended but other names mentioned include finance department head Jenny Wilkinson, treasury boss Stephen Kennedy and RBA deputy governor Michele Bullock.
"I've been consulting relatively widely," the treasurer said of the appointment.
"But at the end of the day, this comes down to a recommendation to cabinet and a decision taken by my cabinet colleagues including the prime minister and I don't really want to pre-empt that or front run that."
Dr Lowe is due to make a public appearance on Wednesday at a lunch hosted by the Economic Society of Australia.
He will travel with Dr Chalmers to India next week for a meeting of the G20 finance ministers and central bank chiefs.
Dr Chalmers said he had a "very effective working partnership" with Dr Lowe.
"He and I will work closely together to represent Australia's interest in that forum and to make our contribution to the big global conversation about how we safeguard our economies from inflation and some of the other pressures," he said.
"The global economy is treading a perilous path."
Australian Associated Press
