Treasurer Jim Chalmers says inflation is still "unacceptably" high as he awaits a report set to recommend major changes to the Reserve Bank for the first time in decades.
The report is set to suggest interest rates should be set by economic specialists rather than the board, while there would also be fewer rate-setting meetings and regular press conferences from the RBA governor to explain monetary policy.
The review was carried out by an independent panel of experts during the past six months.
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However, the Sydney Morning Herald reports that there is unlikely to be any change to the bank's policy of fighting inflation with interest rate increases.
The report will be delivered to Chalmers tomorrow, ahead of next week's anticipated April interest rates announcement from the RBA.
Speaking on Today, Chalmers avoided speculating on the future of rate hikes, but said it was "encouraging" to see inflation moderating.
"It is encouraging that inflation looks to have peaked at the end of last year and yesterday's numbers more or less confirm that," he said.
"That is an encouraging sign but it is a sign of the times as well that inflation with a six in front of it is seen as welcome news.
"So we still have this challenge in our economy for a little while longer."
A growing number of economists believe the bank will hit pause on its record-breaking run of rate hikes, though further increases are still likely.
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Westpac Chief Economist Bill Evans said there would likely be a pause in rate hikes in April followed by a final increase in May.
"We now expect a pause in April to be followed by a final increase of 0.25 per cent at the May meeting," he said.
Currently the cash rate target of 3.6 per cent is the highest since May 2012, after the RBA hiked interest rates for 10 consecutive meetings.
The RBA's target inflation rate is between 2 and 3 per cent.
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