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Managing net interest rate exposure

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With changes in borrowing and investments, how is the sector’s exposure to movements in interest rates shifting and what are the implications? By Stuart Jones, client director at Arlingclose.

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Interest rate movements can have a significant impact on local authority finances, affecting both the cost of borrowing and the income earned on investments.

Reputational risk and a struggle to access longer-term money are some of the main obstacles to using the local-to-local lending market, according to the investment panel at LATIF 2026.

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