Households may have started to hoard their cash, with new figures showing that the amount of money being kept outside Britain's banking system is now rising at the fastest rate since the financial crisis.
In the weeks following the EU referendum, the rate at which households and businesses built up holdings of UK banknotes and coins rose above 8% a year for the first time since 2009, according to a Sky News analysis of Bank of England statistics.
The growth rate of cash in circulation has more than doubled since January, when it was running at 4% a year, with a sudden acceleration in the weeks following the EU poll.
In cash terms, the amount of notes and coins outside the banking system rose by £1.2bn since the end of May, and by £5.9bn in the past year - the biggest annual rise on record.
The figures come the day before the Bank of England is expected to cut interest rates for the first time since 2009, further reducing the incentive for households to leave their money in bank accounts. Full story...
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In the weeks following the EU referendum, the rate at which households and businesses built up holdings of UK banknotes and coins rose above 8% a year for the first time since 2009, according to a Sky News analysis of Bank of England statistics.
The growth rate of cash in circulation has more than doubled since January, when it was running at 4% a year, with a sudden acceleration in the weeks following the EU poll.
In cash terms, the amount of notes and coins outside the banking system rose by £1.2bn since the end of May, and by £5.9bn in the past year - the biggest annual rise on record.
The figures come the day before the Bank of England is expected to cut interest rates for the first time since 2009, further reducing the incentive for households to leave their money in bank accounts. Full story...
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