Westpac Banking (ASX:WBC) and the Commonwealth Bank of Australia (ASX:CBA) have lowered interest rate following the Reserve Bank of Australia's decision to reduce the cash rate to 4.10%, according to Tuesday statements by the companies.

Westpac will lower its variable home loan rates by 0.25% for both new and existing customers, effective March 4.

Deposit rates are also expected to decrease, with the Westpac Life total variable rate and the Westpac eSaver rate for new online customers to fall to 4.75%, both effective February 28.

Westpac's Chief Executive, Consumer, Jason Yetton, noted the move would save customers an additional AU$90 per month on an AU$500,000 home loan.

Similarly, CBA will cut its home loan variable interest rates by 0.25% per annum, effective Feb. 28.

CBA is also maintaining its 10-month term deposit offer of 4.60% per annum for a limited time.

Shares of WBC fell nearly 1% while shares of CBA fell past 2% in recent Wednesday trade.