With the cost of living and housing affordability shaping up as major issues in the upcoming federal election campaign, the major banks have avoided a political stoush by moving quickly to pass on the Reserve Bank of Australia’s rate cut in full.

Treasurer Jim Chalmers said he spoke to the chief executives of the big banks about their pricing decisions after the official cash rate cut to 4.1 per cent was announced by the RBA on Tuesday afternoon. He did not claim credit for the banks’ reductions, saying their responses were already well progressed.