UK interest rates pay more than Rabo?

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rock3r

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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?
 
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.
 
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.
 
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