Mathias Cormann says the Coalition and the RBA are chasing the same goal.

The Reserve Bank of Australia (RBA) has cut the official cash interest rate by 0.25 percentage points to a historic low of one per cent.

The RBA says it wants to boost activity, with Governor Philip Lowe stressing that easier monetary policy is not the only way to drive the economy.

Mr Lowe said there are a number of steps the government could take.

“One option is fiscal support, including through spending on infrastructure,” Mr Lowe said on Tuesday.

“Another option is structural policies that support firms expanding, investing, innovating and employing people. A strong, dynamic, competitive business sector generates jobs.”

Finance Minister Mathias Cormann said the government is on the same wavelength as the RBA.

“We are kicking in the same direction as the Reserve Bank is, to ensure that we continue to build a stronger economy and can continue to create more jobs,” he told Sky News.

He said the government’s growth policies include an ambitious free-trade agenda and $158 billion tax cuts package.

“Our budget was put together in the context of all of the economic information that the Reserve Bank is acting on as well. It is a pro-growth budget,” Senator Cormann said.

Labor shadow treasurer Jim Chalmers says the RBA rate cuts prove the government is not doing enough.

“We need the government to recognise that the economy is floundering and middle Australia is struggling,” he said.

“And we need a government which is actually prepared to do something about it.”

Just one of the big four banks - ANZ - has promised to pass on all of the 0.25 percentage point central bank cut to its variable home loan customers.

ANZ delivered only 0.18 percentage points of last month's 0.25 percentage point RBA cut, when all the other banks passed it on.

The Commonwealth Bank says it will cut it standard variable rate by 0.19 percentage points this time around.

National Australia Bank will reduce its variable home loan rate by 0.19 percentage points too, while Westpac will issue a 0.20 percentage point cut.