2 min read
Compares total cost and monthly payment of two offers side by side.
What the yield curve shows
The yield curve plots interest rates against time to maturity. An upward slope suggests the market expects higher rates ahead; an inverted curve can signal expected cuts. It reflects the collective interest rate outlook.
Why it matters to borrowers
The curve influences the price of fixing: if the market expects rises, fixed rates price that in, so a fix costs more. It helps you judge whether locking in looks like value against staying variable.
The limits of reading it
The curve is a forecast, not a fact — it is often wrong. Use it as context, never as a reason to skip a stress test. Being prepared for the curve to be wrong is the safe posture.
Turn context into a decision
Combine the outlook with your own affordability and horizon. Model the fixed and variable options with the calculator below before choosing.
Where Credicorp fits
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
Can the yield curve predict my rate?
It reflects market expectations, which are often wrong. Use it as context for the fix-or-float decision, not as a prediction to bet on.
Does an upward-sloping curve mean I should fix?
It means fixed rates already price in expected rises, so fixing may cost more. Whether to fix depends on your affordability and appetite for risk, not the curve alone.
Where do I see the yield curve?
Financial data providers and the Bank of England publish it. But for most decisions, your own stress test matters more than reading the curve precisely.
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