2 min read
Definition
Interest rate sensitivity quantifies the impact of a rate move on your business — for example, how many pounds a 1% rise adds to annual interest. It rises with the proportion of variable debt and the size of the balance, and is the core of interest rate risk.
In plain terms
It answers: if rates move 1%, how much does it cost me? The bigger and more variable your debt, the bigger the answer.
Why it matters for your company
Measure your sensitivity so a rate move is a known quantity. See how to stress-test a loan against rate rises and interest rate buffer.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.