Treasurer Jim Chalmers will impose a sweeping overhaul of the Reserve Bank of Australia including creating two RBA boards – one that sets interest rates and another that oversees the central bank’s governance.

The biggest shake-up to the RBA since inflation targeting and formal independence was established in the 1990s will be outlined by the Treasurer on Thursday, including in-principle support for all 51 recommendations of an independent review, An RBA fit for the future.