The banks are under no obligation to cut their interest rates if the RBA cuts the cash rate. However, given the cost of living is such a big issue at the moment, they would face significant backlash if they didn't pass savings on to customers.

The Reserve Bank Board of Australia (RBA) announced they had cut interest rates by 25 basis points to 4.10%. The easing is the first since November 2020, when the central bank cut rates while grappling with the pandemic’s economic slowdown.

SYDNEY: Australia's central bank is poised to cut interest rates for the first time in four years even as the board remains alert to potential inflationary pressures from mounting global trade turmoil and risks of an election splurge at home.