March is the worst time to borrow from another local authority, according to analysis by treasury adviser Arlingclose.
In a blog post, Flora McLaughlin, client executive at the firm, said that the interest rates charged by councils are always above LIBOR during the last month of the financial year.
The blog said: “March is therefore not a great time to borrow, though we understand trades at this time of year are most commonly made out of necessity relating to year end cash flow.
“However, what it does show is that March is a profitable time for investors that are able to part with the cash.
“July and August are better for borrowers, particularly for the longer durations, with rates then moving more favourably for investors in the Autumn.”
Arlingclose runs its own authority-to-authority lending platform for councils.
