UK interest rates pay more than Rabo?

[rock3r]

Rabo gives you 5%, the UK's Central Bank has now set interest rates at 5.5%.

How can a small Irish investor profit from this? How to buy a bond from the BoE paying 5.5% in sterling?

 

[demoivre]

Any profit you make from a sterling denominated asset may be eroded by any adverse movement in the exchange rate ie sterling could weaken after you buy in to them.

 

[woods]

Or sterling could go up.
If the currency does not change you will also have the transaction costs of converting to sterling and converting back so it would need to be a long term plan to make it worthwhile.

 

[CCOVICH]

This has been discussed many times before-use the search facility.