The Reserve Bank has admitted it has yet to see strong evidence the Morrison government's tax cuts are finding their way into the economy while warning wages growth appears to have "stalled", paving the way for further interest rate cuts.

As the government prepares to confirm the budget is back in balance for the first time in a decade, the RBA used the minutes of its latest meeting to highlight growing economic risks that may force it to take official interest rates below 1 per cent.

The Reserve Bank has noted there is little evidence yet that the government's tax cuts are being spent by the nation's shoppers. Credit:AAP

The combination of rate cuts in June and July plus the tax cuts that started flowing into bank accounts over recent months was expected to deliver a much-needed boost to cash-strapped households.

But the RBA noted retail sales volumes had been weak through the June quarter and the value of sales fell in July with no signs from the sector that shoppers were using their extra cash.