Paul Keating warns treasurer not to remove government's power to override RBA decisions

Paul Keating argues that there needs to be some degree of democratic control of the Reserve Bank. (ABC News)

Former prime minister Paul Keating has warned the Reserve Bank of Australia (RBA) must not be allowed to become completely independent of government.

In exclusive correspondence with the ABC, Mr Keating said the recommendation to strip the federal government of its power to overrule an RBA decision, from last week's Reserve Bank review, goes against democratic norms.