Lloyds warns of Brexit ‘economic uncertainty’

Brexit 'potentially volatile'
Brexit 'potentially volatile'

Lloyds Banking Group has waded into the debate over Britain’s referendum on Europe, warning that Brexit was likely to cause “economic uncertainty” in the short term.

The banking giant said a vote for Britain to exit the European Union would be “potentially volatile”, but it was unclear how it would impact the UK economy in the long term.

It added: “The board is mindful that the future of the UK’s relationship with the EU is a matter for the UK electorate, and that for many the debate is about more than just economics.”

The high street lender was asked about its stance on Britain’s membership of the EU in February when it announced its annual results, but said the board would take time to discuss the issue before revealing its view.

Its comments come after the Bank of England warned that a Brexit vote could hurt the economy and ‘’push down on demand’’.

Members of the Bank’s Monetary Policy Committee (MPC) said the economy may face “an extended period of uncertainty’’, as it considered the ‘’likely implication for monetary policy’’ if Britain left the European Union.

Lloyds chairman Lord Norman Blackwell expressed his personal views on the issue in October last year when he said Britain’s membership of the EU was not sustainable without “significant change”.

But the Conservative peer said Britain was “likely to remain an attractive global location” whatever the outcome of the EU referendum on June 23.