Westpac Banking (ASX:WBC) has decreased interest rates for home loan and deposit customers following the Reserve Bank of Australia's decision to reduce the cash rate by 0.25% to 3.85%, according to a Wednesday statement.

The bank will decrease home loan variable interest rates for new and existing customers by 0.25% per year, effective June 3, and decrease the Westpac Life total variable rate for deposit customers by 0.25% per year to 4.50% per year, effective May 30.

The bank will decrease the total variable rate with a 5-month introductory rate by 0.25% p.a. to 4.50% p.a. for new customers applying online under the bank's eSaver accounts, effective May 30.