Commonwealth Bank also passed on the full rate cut this afternoon, lowering its standard variable home loan rate to 6.15 per cent with effect from May 13. Westpac lowered its rates just before 5pm, bringing its standard variable mortgage rate down by 25 basis points to 6.26 per cent, with effect from May 20. After NAB and CommBank's moves to pass on the 0.25 basis point cut in full, Westpac said they had put their interest rates under review. Financial markets and economists have been split over whether the central bank would continue its easing cycle, which has seen 175 basis points of cuts since November 2011 before today's announcement. The cut would be welcomed by families and by small businesses, was the "interest rate cut that they thoroughly deserve," the Treasurer, Wayne Swan, said. "I'm pleased that the NAB and the Bank of Queensland have passed this cut through in full," he said, adding the picture the Reserve Bank was painting was "in no way similar in no way similar to the picture at the height of the financial crisis." Commonwealth Bank chief economist Michael Blythe said the central bank would be looking for clearer signs that residential construction is picking up, that consumers are still spending and that non-mining capex is starting to turn around following the latest cut. "The one thing that would worry them is if lower rates led to an acceleration in house price growth - that's clearly what they don't want to see," Mr Blythe said. So if you see a bit of acceleration in house prices on the back of this rate cut, then that would make it difficult for them to cut rates further. UBS economists Scott Haslem and Georgie Tharenou said they believed the RBA had "grown weary of a high Australian dollar, while becoming more comfortable about the high pace of domestic inflation given the improving productivity trend." The economists said given the persistent strength of the dollar, lower commodity prices and slower growth in China, the cash rate was likely to remain lower for longer as compared to previous easing cycles. Retailers cheer decision The chief executive of the Australian National Retailers Association, Margy Osmond, said the lower rate was "just what the doctor ordered." The sector is doing what it can to get Aussies back to shopping, prices are down and there's not much room for them to drop further. Ms Osmond said. With the RBA now playing its part consumers may now feel secure enough to spend and business can recover. Data released yesterday showed that seasonally adjusted retail sales data for March was softer than expected. Attention now turns to the big banks and other mortgage lenders, and whether they would follow NAB and the Commonwealth Bank in passing on the full 25 basis points of cuts. At the same time, Australian house prices edged 0.1 per cent higher in the March quarter but lower than economists' expectations, echoing fears of tepid growth in the sector. Economic "tipping point" Coca-Cola Amatil managing director Terry Davis said a lower interest rate may be a "tipping point" for bringing down the value of the Australian dollar which could have a significant impact on the economy. I think the damage that has been done as a result of the strength of the Australian dollar is much more significant than what policymakers have taken notice of. He pointed to areas like tourism. There are 2 million more people going out of Australia than coming in to Australia, 10 years ago it was the reverse of that. That's 2 million people who don't buy a can of coke that day, or don't go to Harvey Norman or don't go to the theatre, use a hire car. with Jonathan Swan and Colin Kruger