The Commonwealth Bank of Australia has become the last of the big four banks to match the Reserve Bank of Australia’s latest rate cut.

CBA announced on Wednesday a one percentage point cut to its standard variable mortgage rate, matching an announcement made by the National Australia Bank this morning.

The CBA and NAB moves follow Westpac and ANZ Banking Group in passing on the rate cut in full. The other two announced their cuts on Tuesday.

The CBA will cut standard variable mortgage rates by 100 basis points to 5.74 per cent, effective February 13.

“We are pleased to announce that Commonwealth Bank customers will benefit from the full interest rate cut on all variable home loan rates,” CBA retail banking services group executive Ross McEwan said.

But the Commonwealth also echoed the other banks in warning that the high costs of its own borrowing meant it may not be able to pass on future rate cuts in full.

“As the world economic crisis continues and the current pressure remains on funding costs, any future changes in interest rates will need to reflect these higher costs of funds,” CBA said.

“On this basis, we may not be able to pass on in full any future interest rate cuts.

“We understand the importance of ensuring that in the current economic climate we support our home loan customers. We are committed to ensuring that our customers receive competitive home loan products.”

NAB announced on Tuesday morning a one percentage to 5.74 per cent.

Westpac and ANZ announced 100 basis point cuts to their standard variable home loan rates on Tuesday, taking standard variable home loan rates to 5.91 per cent and 5.91 per cent respectively.

The RBA annouced on Tuesday a one percentage point cut to interest rates, taking the cash rate to a 45-year low of 3.25 per cent.

AAP