If there is a cut in the cash rate in Australia next week, as interest rate markets and many commentators anticipate, will lenders cut home loan rates by a full quarter of a percentage point in line with a likely RBA cut?In the case of big banks the guessing is that the answer will be no, as they take an opportunity to manage their margins.National Australia Bank yesterday included a slide in its presentation pack for its full-year profit that invites the inference that NAB can rationalise a cut in the variable home loan rate of less than 25 basis points should the RBA ease monetary policy.NAB put the "increased cost of funding" since June 2007 at 125 basis points.The "total recovered", NAB said, was 110 bps.In November 2010, NAB increased its variable rate by 43 bps, following a rise of 25 bps in the cash rate. At the time, big banks followed the lead of Commonwealth Bank, to a degree, in widening margins, a decision that generated plenty of controversy.Wayne Swan, the Treasurer, weighed into the issue at a media conference with a stock warning that "there is absolutely no excuse for any bank not to pass on any Reserve Bank rate cut, absolutely no excuse whatsoever."If banks do feel the need to follow the RBA they have other pricing options to manage margins, including the less scrutinised deposit rates, business lending rates and credit card rates, with the latter in particular being historically sticky at a time of falling rates.Some lenders will follow the RBA.ME Bank yesterday publicised its decision to cut variable home loan rates by 25 bps in line with any cut in the official rate.Ian Hendy, group executive for brand, said ME Bank was taking a "member-driven approach. We're taking a look at what's happening in the economy generally. We believe confidence needs a lift."