News: CBA UPDATE 1-Australia's CBA cuts interest rates on some home loans for new borrowers

(Updates throughout with details on cuts, adds background)

Aug 23 (Reuters) - Commonwealth Bank of Australia (CBA) , the country's biggest lender, on Friday said it has cut interest rates across some of its home loan products for new customers.

CBA said it cut the variable mortgage rate it offers to new borrowers by 25 basis points to 6.89% if such borrowers have a 20% deposit.

New loan borrowers who have deposits bigger than that will see their mortgage rate reducing by 20 bps.

The rate cuts reflect growing competition in Australia's mortgage market amid decade-high interest rates and inflation above the central bank's target range.

"As part of our ongoing review of our interest rates and market conditions, we have today reduced the interest rates across some of our fixed and variable home loan products for new borrowings," A CBA spokesperson told Reuters in an emailed statement.

Reserve Bank of Australia governor Michelle Bullock recently dampened any optimism around a rate cut before Christmas. Markets expect cuts later this year or early next year, once inflation is returned to target.