Borrowers are stashing away Reserve Bank interest rate cuts rather than splurging the spare cash, the biggest lender has revealed as the RBA prepares to hold rates steady for at least another month to be sure inflation pressures are under control.

Data from the Commonwealth Bank, which has $392 billion in mortgages on its books, shows 11 per cent of its home buyers reduced their repayments after the Reserve sliced the official cash rate by a quarter of a percentage point at its August meeting.

Despite three interest rate cuts, most Commonwealth Bank customers are deciding not to reduce their mortgage repayments. Credit: Dion Georgopoulos

Since the Reserve Bank started cutting rates in February, it has taken the cash rate down from 4.35 per cent to 3.6 per cent. On an average $600,00

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