Greens-Coalition alliance may force Chalmers to keep power to overrule RBA on rates

Chalmers had announced plans to scrap the veto power but former treasurers and RBA governors say it is a vital safety valve'

• Follow our Australia news live blog for latest updates
• Get our morning and afternoon news emails, free app or daily news podcast

An alliance between the Greens and Liberal parties in the Senate could force Jim Chalmers to keep a government power that allows treasurers to overrule Reserve Bank decisions on interest rates.

Chalmers announced plans to scrap the veto power in the government response to recommendations from a panel which reviewed the Reserve Bank operations and made suggestions for improvement.

Sign up for Guardian Australia's free morning and afternoon email newsletters for your daily news roundup