Issue - meetings

That the Treasury Management 2015/16 quarterly update be noted.

The Finance Manager - Technical Accountancy introduced the quarterly update on matters relating to the Council’s Treasury Management Policy, Strategy and Practices 2015/16 to the end of February 2016.  Since the update given at the previous meeting, there had been no change to the Council’s long-term borrowing.  No significant change was reported on the Council’s investments which, at the end of February 2016, totalled £40.5m spread over 20 counterparties with an average interest rate of 0.57%.  Attention was drawn to the economic update which was based on information from the treasury management advisors and the agreed approach being taken to the suspension of a bank from the counterparty list.

In response to a question on the latter, the Finance Manager provided explanation on the intent to continue with the one investment with the affected bank whilst not entering into any new investments, based on the advice received.

Following a question from Councillor Ian Dunbar on the economic update, the Finance Manager explained that the predicted rise in the CPI inflation rate was not expected until at least 2017.

RESOLVED:

That the Treasury Management 2015/16 quarterly update be noted.