Historically, interest rates on loans denominated in USD, EUR, JPY or CHF have been well below GBP interest rates, as the graph below illustrates. However, for the time being, that differential no longer exists.
This graph shows the average London Interbank Offer Rate (excluding a bank lending margin) of the major currencies and ECU's clients' historical cost of borrowing (excluding a bank lending margin) for each full year since inception of the Managed Multi-Currency Liability Management Pprogramme. Source: Financial Times, The ECU Group plc records.
Past performance is no guarantee of future performance. Foreign exchange movements can be sudden and substantial. Changes in the exchange rate may increase the sterling equivalent of a client's debt. The increase could be sizeable.