SYDNEY, Sept 23 Reuters Longdelayed reforms to the Reserve Bank of Australia RBA faced a fresh setback on Monday as Greens lawmakers demanded the Labor government engineer a cut in interest rates in exchange for their support for the legislation.

In a statement, the Greens said they wouldn39;t pass Labor39;s RBA reforms until interest rates were cut.

The Reserve Bank should lower interest rates tomorrow and if they don39;t, the Treasurer should use his existing powers to bring down interest rates and relieve pressure on mortgage holders, the Greens said.

The RBA will decide on its next policy move on Tuesday, having left interest rates unchanged at 4.35 since November. Policymakers have all but ruled out a rate cut this year as inflation remained sticky, to the ire of borrowers.

The reforms, which were recommended by an independent review last year, included setting up a separate governance board to complement the current monetary policy board.

The ninemember ratesetting board would still have six outside members, which the LiberalNational opposition said could be used by the ruling Labor Party to include appointees friendly towards the current government.

Just two weeks ago, the LiberalNational coalition opposed the reforms, which meant Treasurer Jim Chalmers would need the support of the Greens or independent lawmakers to legislate the changes.

Finance Minister Katy Gallagher said the Greens are out of control.

We won39;t work with that because that is crazy….