The Bank of England is expected to cut interest rates, possibly even imposing a negative rate on bank reserves, forcing banks to start charging for operating current ­accounts

Savers appear to be hoarding cash at the fastest pace since the financial crisis over fears that the Bank of England may cut interest rates into negative territory to cushion the economic blow from Brexit.

Statistics from the Bank show households and businesses have increased their holdings of banknotes and coins at a rate of more than 8 per cent a year and there was a rapid acceleration after Britain voted to leave the EU.

Simon Ward, chief economist at Henderson Global Investors, said that savers may be stuffing cash under the mattress “because the Bank is expected to cut interest rates significantly, possibly even imposing a negative rate on bank reserves, forcing banks to start charging for operating current accounts”.

The Bank is widely