I could be wrong but do the RBA only modify rates on 25point increments?Exactly. If the banks were going to pass on the full amount, then the RBA would not have cut by 50. I'm not sure why that seems so hard to understand.
If so then if the banks did pass on full RBA changes then are you saying that the RBA would have only moved 25 points (for a 25 point bank reduction)?
What was the goal of the RBA? a bank 25 point reduction? If so then we got more than they wanted (but probably still within their tolerance range)
If the RBA's changes are in 25 point bands then surely the outcome that they want had a tolerance range and is not a specific number outcome.