Is this the reason-tard this morning?
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.
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 –
Sky News has also found that
Simon Ward, the economist at Henderson Global Investors, said:
“Hoarding may also reflect increased demand for £50 notes due to uncertainty about their future supply,”
“(BOE) Governor Carney confirmed in June that there are no plans to introduce a plastic version of the £50 note,
The sharp increase in the amount of notes and coins outside the banking system is likely to sound an alarm for economists, some of whom have warned that with interest rates at record lows, there is diminishing the incentive for consumers to leave their money in bank accounts, prompting them to hoard their money at home.