Asset Allocation & Risk

What is interest rate risk?

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Interest rate risk is the risk that the value of assets or returns will be affected by changes in interest rates or in their volatility.

A typical example is that bonds already held fall in price when interest rates rise. Changes in interest rates can work for or against investors, so it is a good idea to know how sensitive your assets are to interest rates.

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This answer is general financial information as of 14/10/2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.