Declarations of interest:
None.
Witnesses:
Phil Triggs, Strategic Manager Pensions and Treasury
Key points raised during the discussion:
· Brexit was the number one risk on the treasury risk schedule
· There had been some unexpected surprises following Brexit in that the FTSE100 index had seen healthy increases.
· Gilt prices had risen and yields had fallen which was favourable for local authorities.
· The Bank of England’s Monetary Policy Committee had met in the previous month and had decided to take no action.
· It was suspected that the current base rate may reduce at the August meeting and the level of quantitative easing may be increased.
· It was reported that officers were carefully monitoring the investment/financial horizon and constantly looking for warning signs in order that there would not be a repeat of the Icelandic issue in Surrey.
· In July, full council approved a revised treasury management strategy that will result in cash balances being further reduced and short term borrowing increased in order to reduce risk.
Action/Further information to note:
The Chairman asked that Members send any questions regarding treasury to the Strategic Manager Pensions and Treasury before the next committee meeting and training session in September.
Resolved:
1. That the content of the Treasury Management Annual Report for 2015/16 was noted.
2. That the revised Treasury Management Risk Register, shown in Annex 3 of the report be adopted.