With banks able to borrow from the Reserve Bank at their discretion at 25 points above the cash rate, and the Reserve Bank paying interest on exchange settlement balances at 25  2  BIS Review 94/2007  points under the cash rate, the rate at which cash can trade in the market is confined to a 50 point corridor around the target.
Inflation too tracked that in the UK rather closely in the sterling link decades, except during the period of wartime price controls. The pass-through was not immediate or exact, 3 but, taking one-year with the next, it was inescapable.