Hockey angry if RBA rate cut not passed on

Treasurer Joe Hockey says he expects all back to pass on the Reserve Bank's 25 basis point cut in full.

Treasurer Joe Hockey says he expects all banks to pass on the RBA's 25 basis point cut in full. (AAP)

Treasurer Joe Hockey will be "very angry" if the nation's banks don't pass on the latest official rate cut in full.

The Commonwealth Bank, Australia's largest home lender, will pass on just 20 basis points of the Reserve Bank's 25 basis point reduction, while increasing rates on deposits.

"The banks are making very good profit and we need our banks to be profitable but when the Reserve Bank acts, we expect the banks to also act in full as well," Mr Hockey told reporters in Queanbeyan on Wednesday.