In negotiations, Treasurer Jim Chalmers has offered to limit the government's ability to overrule the RBA on interest rates, allowing intervention only in emergency circumstances.

Policymakers have largely ruled out a rate cut this year due to persistent inflation, which has frustrated many borrowers struggling with rising debt repayments.

The Greens have made it clear that they will not support Labor's proposed reforms for the Reserve Bank of Australia (RBA) unless there are cuts to interest rates.

These reform efforts are currently facing delays as Greens lawmakers insist on interest rate reductions from the Labor government.

Chalmers' proposed reforms aim to create a committee to oversee interest rate settings, marking the most significant changes to the RBA since its establishment in 1959.

The reforms include establishing a separate governance board alongside the current monetary policy board, following recommendations from an independent review conducted last year.

However, ongoing political disputes have stalled the reform legislation, leaving the current structure of the RBA's policy-setting board intact.

RBA Governor Michele Bullock has indicated that a cash rate cut is unlikely in the near future, intensifying pressure on Chalmers to act.

The Treasury anticipates that upcoming inflation data will show a significant decrease, potentially aligning with the targeted range of 2% to 3%.

Ahead of the RBA's next meeting, the Greens are challenging Chalmers to intervene in the RBA's decision-making process to secure their support for the reforms.

Chalmers has expressed a desire for Coalition support for the reforms, but the Greens' backing could allow changes to be implemented before the expected federal election next year.

The RBA is set to announce its next policy decision soon, having maintained interest rates at 4.35% since November.