Lloyds Banking Group is axing 3,000 jobs and closing 200 branches as it races to cut costs in anticipation of a cut in interest rates.

The bank is blaming changes to customer behaviour and anticipated cuts to interest rates following the vote for Brexit last month. Mark Carney, the Bank of England governor, signalled a rate cut would take place during the summer and the City now expects rates will be cut from their 0.5% historic low on 4 August.

The cuts by the 9% taxpayer-owned bank come on top of 9,000 announced in a three year cost-cutting programme in October 2014 which was announced after 45,000 jobs had gone since the rescue of HBOS during the 2008 crisis. Lloyds, which also owns Halifax, employs around 75,000.

The bank had already earmarked 200 branches for closure by 2017 so the latest announcement means that 400 will be shut by the end of next year.