Fund managers say traders have overblown the comments from governor Michele Bullock and are siding with the central bank on the rate outlook.

The Reserve Bank of Australia (RBA) is widely expected to hold the cash rate steady at 4.35 per cent when it announces its interest rate decision at 2:30pm today. Only one major bank is still holding out hope the central bank will cut rates by the end of the year.

A staged rollout means the rebates hit bills in Queensland and West Australia in July and other states in August. The Bureau of Statistics says they took 6.4% off the average national power price in July and Westpac expects them to have taken off a further 15% in August.

Long-delayed 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.

Australian Treasurer Jim Chalmers’ plans to overhaul the Reserve Bank have suffered a major setback after the left-wing Greens party demanded the government order the central bank to cut interest rates.

The Greens have promised to back the Labor Party in their RBA reforms if the Reserve Bank cuts rates immediately.

Labor is staring down a threat from the Greens that the federal government steamroll the central bank and force it to cut rates to get a deal on reforms.

Sky News Business Reporter Edward Boyd says the Greens are pushing for the Reserve Bank to cut rates “immediately”.