Reserve Bank governor Philip Lowe has outlined a major overhaul of the RBA that he says will make it more “transparent” and “useful to the community”.

Dr Lowe on Wednesday delivered the RBA’s response to an independent review released in April that recommended big changes.

He said the board would have fewer meetings each year — eight instead of 11 — and they would run for longer.

The RBA will also hold press conferences to answer questions after making its decision on the official cash rate.

While outlining the changes, Dr Lowe warned that Australians could be badly hurt by high inflation and the RBA was “resolute” about getting it under control.

Signalling the potential for more pain ahead, Dr Lowe said the central bank was “deadly serious” about tackling inflation, but there was a limit to how long the issue could drag out.

“We will do what is necessary to achieve that [lower inflation],” he said.

Dr Lowe said he had signed off on a range of recommendations, marking the most significant overhaul to the RBA’s operations in decades.

“Together, these changes are significant and represent a substantial response to the recommendations of the review,” Dr Lowe told an Economic Society of Australia event in Brisbane on Wednesday.

“They will enhance our decision-making and our communication and will help us be the open and dynamic organisation that we aspire to be.

“We have an important job to do on behalf of the Australian community. The bank staff are committed to doing that job to the highest possible standard. These changes will help us do that.”

The other key change put forward by the three reviewers was to create two boards – one for setting monetary policy and one for day-to-day operations.

Dr Lowe said other recommendations would be considered after the new monetary policy board was up and running, to avoid locking the RBA into a particular approach. This includes the possibility of publishing an anonymous vote count and more public appearances from board members.

He said the existing and proposed structures were unusual by international standards.

“In almost every other central bank, most of the decision-makers are insiders – that is, they spend the bulk of their time inside the central bank,” Dr Lowe said.

He said only two of the bank’s nine board members were insiders and the reliance on outside members would continue under the new structure.

“The Australian model has the advantage of ensuring diversity of thought and it helps bring a wider perspective to monetary policy decisions,” he said.

“However, it does have implications for the way those decisions are communicated and the appropriate accountability mechanisms.”

Dr Lowe said it was appropriate for the new board to decide on these matters at a later date.

He also revealed the extent of work already under way to reform the bank’s culture and address other recommendations.

The RBA has committed to recruiting a chief operating officer and someone to head a new internal communications function.

Wednesday’s developments came after Treasurer Jim Chalmers said he was poised to take to federal cabinet a recommendation regarding the future of Dr Lowe beyond the expiry of his seven-year term in September.

Dr Chalmers 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 said.

• In the running for RBA governor? See the long list

It is still possible Dr Lowe will have his term extended. But other names mentioned include Finance Department head Jenny Wilkinson, Treasury boss Stephen Kennedy and RBA deputy governor Michele Bullock.

Asked if he would stay on if Dr Chalmers requested it, Dr Lowe said he would be honoured to.

“If I am not asked to continue in the role, I will do my best to support my successor, and the Treasurer has said he will make an announcement before the end of this month.”

Dr Lowe and Dr Chalmers will travel to India next week for a meeting of the G20 finance ministers and central bank chiefs.

-with AAP