Further evidence of a fall in the demand to hold money is provided by Investment Management Association figures showing £2.2 billion of net retail sales of unit trusts and OEICs in August, a record for the month – see chart. Sales remain on course to reach £24 billion in 2009, above the 2000 peak of £18 billion and up from just £4 billion last year.

As previously explained, if this year's increase is a reflection of reduced money demand, broad money numbers will understate the growth in cash available to support a recovery in the economy and markets by about £20 billion, equivalent to 1.3% of M4 excluding "intermediate other financial corporations".

Sales of bond and equity funds were similar in August, at £742 million and £696 million respectively, while property inflows continued their recent revival, reaching £129 million – the highest since June 2007.