Former Reserve Bank of Australia director Warwick McKibbin has fired back at ex-governor Ian Macfarlane’s criticisms of the RBA review, arguing there is too much power vested in the governor and that the board structure had been flawed for decades.

Mr Macfarlane, governor from 1996 to 2006, said earlier there was “no evidence” the review’s proposed 51 reforms would improve interest rate decisions. Rather, it would mistakenly weaken the governor’s power and cause more confusing communication on monetary policy, he said.