Rates to stay on hold as RBA weights household debt

After back to back interest rate cuts, the Reserve Bank looks likely to hold fire when its board meets tomorrow.

As the RBA assesses the impact of reductions in June and July, analysts are questioning the rate cutting strategy and when its enough to stimulate a softening economy. 

Dr Timo Henckel, a member of the RBA shadow board at the Australian National University says lower rates risk rising household debt.