Australian borrowers need to profit too from the significant interest rate reduction implemented on Tuesday by the country's central bank, according to Federal Treasurer Wayne Swan, as he called on the Big Four to pass on the cut to their customers.

Noting a relative slowdown in the global economy since late last year and the likelihood that such pace would be sustained for much of 2012, the Reserve Bank of Australia (RBA) rolled out yesterday it biggest pushed back on the cash rate in years by slicing 50-basis-point from last month's 4.25 percent, which has been in effect since December last year.

With the country's borrowing cost now standing at 3.75 percent, analysts said homeowners and the consumers in general would surely get some form of reprieves with the RBA May decision.

Mr Swan, however, has admitted that the projected benefits for the Australian public by the big cuts provided by the RBA board would not become a reality if giant banks would insist on imposing rates that were largely out of synch from that of RBA's policy.

The Treasurer reminded bank officials that the public would be pleased to see their banking providers to observe the policy rates that the RBA has decided upon.

Shortly after the RBA announced the cash rate cutbacks, which the market has been expecting, Mr Swan urged the country's bankers, especially the Big Four, to pass on the benefits of the new rates to their customers.

These banks, he added, can easily decide on lower interest rates as "their profits are robust ... the RBA has observed that funding costs have come off in recent times, yes there has been some volatility in costs over time."

"The fact is these banks are very, very profitable. I think they ought to pass through this 50 basis point cut in full," Mr Swan declared in an interview with Sky News on Wednesday.

So far, only the Bank of Queensland has responded to the Treasure's call as it announced on Tuesday night that it will implement a cut of up to 35-basis-point on its existing standard variable rate.

The majors, meanwhile, have yet to issue any indications that they would follow suit.

The Australia & New Zealand Banking Group (ANZ) has only referred to its official rates review prior to any movements to its borrowing costs while Commonwealth Bank, National Australia Bank (NAB) and Westpac have yet to issue comments on the matter, media reports said.

These banks, according to Mr Swan, have been enjoying the liberty of choosing the pace and metrics of their interest rates while at the same time amassing billions in the process.

For instance, ANZ has revealed this week that its income in the first half surged to $2.92 billion, kicking up by 10 percent from the same period last year.

The bank, however, flagged the gradually dwindling profit margins it was realising, effectively hinting that slashing its rates, at least in significant levels, could be out of the question.

Yet whatever the case may be, the Coalition joined the government on its stance that banks must pass on the generous cuts that the RBA has rolled out."

"We do believe as a Coalition that the banks should pass on this half a per cent cut," shadow finance minister Andrew Robb told ABC in an interview on Wednesday.

"The economy is in such a weakened state, confidence is so low, we think it is in the banks' own interest to pass on the full half a per cent," Mr Robb stressed.

He also dismissed Mr Swan's accusations that the Coalition was supportive of the banks' manoeuvrings that veered away from rate policies issued by the central bank.