"These are unprecedented times," chief executive Matt Comyn said.Credit:AAP
The bank also said it would cut various fixed-rate loans by as much as 0.7 percentage points,and increase one of its term deposit rates.
"These are unprecedented times,and they call for unprecedented measures,"Mr Comyn said in tweet from the bank.
CBA's decision came after the RBA slashed rates in an emergency meeting on Thursday,and took extraordinary steps to support business lending in the face of an expected recession caused by the coronavirus.
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Under a new policy unveiled by the RBA,banks will be able to access $90 billion in three year funding at an interest rate of 0.25 per cent,provided they increase lending to businesses.
The RBA said the federal government had developed a"complementary"support program for non-bank lenders,small banks,and the securitisation market.
The central bank also took steps to alleviate some of the signs of stress in overnight money markets - which are used by banks to settle transactions between them,and are crucial to the setting of interest rates.
Other banks have not yet announced their response to the RBA.