The gauntlet was let go by the Australia & New Zealand Banking Group (ANZ) on Friday, according to Federal Treasurer Wayne Swan, adding that one of the Big Four ended the week with a solid message to its peers - passing the full rate cut is possible.

The giant bank announced today that it will heed the rate benchmark reduction of 25 basis points decided by the Reserve Bank of Australia (RBA) on Tuesday, the first of the Australian banks to do so following speculations that most of the lenders would again set their loan rates independent of the central bank's move.

But the Bank of Queensland reacted faster when it immediately pushed down its in-house rates by 20 basis points immediately after the RBA concluded its meeting this June and announced another cut after the 50-basis-point shaving it allowed last month.

ANZ, nonetheless, did much better three days later as the bank said that by Friday next week its standard variable rate will be set at 6.80 percent.

According to ANZ Chief Executive Philip Chronican, the rollback has been decided despite signals that the domestic economy is doing well and growing amidst the challenges in Europe, which experts said could impact on local settings.

"We know that several major states and many of our customers are not directly benefiting from the strength of the resources sector,' Mr Chronican said in a statement.

Mr Swan hailed ANZ for showing sensitivity on the situation of the average Australians, many of which, analysts said, have yet to feel the benefits of the resource boom that mainly fuels the advances of the Australian economy.

"It's great news that ANZ has decided to give its customers a fair go with this decision," the Treasurer was reported by the Australian Associated Press (AAP) as saying in a statement issued today.

What remains to be seen, Mr Swan added, is if ANZ's move could prod the remaining members of the Big Four to follow suit.

The public now awaits if Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and the Westpac Group would allow their banking clients to enjoy the 3.50 percent cash rate rolled out by the RBA this month, Mr Swan said.

"This morning ANZ really threw down the gauntlet to the other banks to do the right thing or risk seeing their customers walk out the door," the Treasurer said.

Three days into the RBA cut though, no word has yet to come from the major banks if their mortgage rates would also be moved parallel with the level handed down by the central bank for June.

Or if they would allow for home loan rate cuts at all.