XMAS CASH VOLUME
Brits have been hitting ATMs heavily this holiday season as cash withdrawals are running about 7% higher than one-year ago. Through December 10th more than GBP 3.2 billion in cash has been withdrawn from LINK cash machines during December, an increase of GBP 140 million compared with the same period in 2006. LINK Data for December show that cash withdrawals since Friday, December 7th have been particularly high, suggesting that mortgage holders may have been encouraged to spend more freely following the recent rate cut. On December 6th the Bank of England’s Monetary Policy Committee voted to reduce the official “Bank Rate” paid on commercial bank reserves by 0.25 percentage points to 5.5%. LINK also noted that ATM cash withdrawals in previous years grew about 5.00% to 5.50% per year, however this year there was a significant jump. LINK data covers cash withdrawals from more than 64,000 cash machines in the UK.