Given the market had factored in the 0.25 per cent interest rate well ahead of Tuesday's announcement, rising slightly after alarming falls, it is unlikely there will be an immediate flow on effect.

That said, if the RBA had failed to deliver then the morning's gains, also fuelled by a 5 per cent rise on Wall Street overnight, would have soon evaporated.

The other immediate effect was a small rise in the Australian dollar. If the RBA had not cut rates it would have dropped even further given the US Reserve could be cutting its rates by up to one per cent in the next few days.

By choosing not to opt for the 0.5 per cent some had tipped, RBA governor, Philip Lowe, and his colleagues have kept some powder dry for a further 0.25 per cent cut expected next month.

The big news was the PM's statement his government is finalising its "moderate" stimulus package to help kick-start damaged sections of the economy in the wake of the fires and the Covid-19 outbreak.

Although the fires only slowed growth during the first two months of 2020, there are fears the black summer and supply chain disruptions caused by Covid-19 outbreak could tip Australia into negative growth.

Two consecutive quarters of negative growth, on the cards if the global medical community can't put this evil genie back in the bottle quickly, constitutes a recession.

Australia, which dodged a bullet during the GFC thanks to the underlying strength of the Chinese economy in the first decade of the century, has not experienced a full-fledged economic downturn since Paul Keating's "recession we had to have" 30 years ago.

The remarkable pressure the PM put on the big four banks to pass the interest rate cut on in full, even before it was formally announced, indicates how large the stakes are.

The Australian economy is in serious trouble as a result of the coronavirus outbreak in China. International pundits, including one of Donald Trump's former economic advisers, have said this country is more exposed to a Chinese downturn than anybody else.

This is because of the importance of iron ore, coal and other resource exports to our national bottom line.

China's growth for the quarter is now expected to be down by 8 per cent, a figure that will put it into negative territory for the first time since Mao's cultural revolution in the 1960s.

This is why, in the view of Mr Morrison and his colleagues, the big banks must pull their weight in a time of national emergency. The many millions of Australians who have less than fond memories of kicking the tin with their taxes to bail out the majors during the GFC aren't about to disagree.

This time around the PM adopted an intriguing tactic. Rather than belting the banks around the head and shoulders with a telephone directory, he appealed to their sense of patriotism.

Citing the example of Qantas, which pulled out all the stops to help the government evacuate citizens from coronavirus hotspots in China and Japan, Mr Morrison effectively said it would be un-Australian of the CBA, NAB, ANZ and Westpac to not pass on the cut in full.

Westpac and CBA were the first off the blocks, announcing they would pass on the full .25 per cent by 2.44pm. NAB soon followed and ANZ was left to bring up the rear.

Consumers will decide what comes next. Are people going to trouser the rate cut or go out and spend it? Time will soon tell.