The Brexit vote has created instability for the UK banking sector and the wider economy, according to one of the UK’s biggest high street lenders. Spanish-owned Santander issued the warning in a half-yearly trading update a day after it cut the interest rates on its popular 123 current account by half to 1.5%. “The UK referendum on EU membership on 23 June marked the end of a period of relative stability for the UK banking sector,” said Nathan Bostock, chief executive of Santander’s UK operations. Santander also listed the risks to its business, including the possibility that interest rates are cut to below zero. The UK banking sector is facing some headwinds as the economy deals with external pressures in the short and medium term.

Source: The Guardian August 16, 2016 12:11 UTC