Australia's biggest bank passes on interest rate cuts

The Commonwealth Bank of Australia ( CBA) is the first of Australia's big four banks to pass on the central bank's interest rate cut to home loan customers.

The Reserve Bank of Australia cut interest rates by 0.25 percent on Tuesday, down to a record low of 2.25 percent in a bid to boost the nation's slowing economy.

CBA said in a statement that it will reduce its standard variable rate by 0.25 percent from February 20. Its three-year and five-year fixed rate products will also be reduced by 0.25 percent and 0.30 percent respectively.

The new standard variable rate of 5.65 percent is the lowest in five years.

The move will increase pressure on the other big banks to move.