The Reserve Bank of Australia (RBA) may open the new year with an interest rate cut, using the minutes of its December meeting to signal concern that slow wages growth is restricting heavily indebted households from boosting the economy.

The minutes, released on Tuesday morning, also suggest the RBA is more pessimistic about the chances of a lift in wages and stronger household consumption than Treasury, as revealed in Monday's mid-year budget update.

Minutes of the Reserve Bank's December meeting suggest it will consider a rate cut early in the new year. Credit:AP

The bank held the official cash rate steady at 0.75 per cent at its meeting this month, with markets expecting at least another cut by the middle of 2020.

The minutes show RBA board members do not believe the current rate of wages growth is strong enough to get inflation to the bank's target band, or consumption growing at its traditional pace.