Australia's central bank unexpectedly cut interest rates to many observers of 0.25 percent, the first step in the last 18 months.

Commonwealth Bank (CBA) which is the largest bank in Australia to follow the same footprint by lowering lending rates by 0.25 per cent to 5.65 per cent.

CBA step was followed by other banks, Westpac which lowered interest rates higher, 0.28 percent, although the overall level of interest rates is still 5.7 percent after being unloaded.

For Commonwealth Bank and Westpac, the loan interest rate is the lowest in the last six years.

CBA said that customers who have a home loan debt amounted to $ 300 thousand dollars, will pay 48 dollars less each month from now on because of the decline in interest rates, while Westpac customers pay 52 dollars more sedkit.

CBA and Westpac said the rate cut will be effective from February 20.

CBA and Westpac is part of the Big Four four largest banks in Australia. Two other banks are ANZ and NAB, which said that they were still reviewing their interest rates.