The table below summarises the effect of a change in finance expense on the Group’s profit or loss had LIBOR, JIBAR, Prime and BBSY differed as indicated (sensitivity to interest rates). The analysis is based on the assumption that the applicable interest rate increased/decreased with all other variables held constant. All financial instruments with fixed interest rates that are carried at amortised cost are not subject to the interest rate sensitivity analysis.
| UNITED STATES DOLLAR | ||||||||||||||||||||||||
| Change in interest expense for a nominal change in interest rates | ||||||||||||||||||||||||
| (1.5%) | (1.0%) | (0.5%) | 0.5% | 1.0% | 1.5% | |||||||||||||||||||
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Sensitivity to LIBOR interest rates |
(11.3 | ) | (7.5 | ) | (3.8 | ) | 3.8 | 7.5 | 11.3 | |||||||||||||||
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Sensitivity to BBSY interest rates1 |
(0.8 | ) | (0.5 | ) | (0.3 | ) | 0.3 | 0.5 | 0.8 | |||||||||||||||
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Sensitivity to JIBAR and prime interest rates2 |
(2.0 | ) | (1.3 | ) | (0.7 | ) | 0.7 | 1.3 | 2.0 | |||||||||||||||
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Change in finance expense |
(14.1 | ) | (9.3 | ) | (4.8 | ) | 4.8 | 9.3 | 14.1 | |||||||||||||||
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2016 |
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Sensitivity to LIBOR interest rates |
(12.0 | ) | (8.0 | ) | (4.0 | ) | 4.0 | 8.0 | 12.0 | |||||||||||||||
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Sensitivity to JIBAR and prime interest rates2 |
(0.6 | ) | (0.4 | ) | (0.2 | ) | 0.2 | 0.4 | 0.6 | |||||||||||||||
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Change in finance expense |
(12.6 | ) | (8.4 | ) | (4.2 | ) | 4.2 | 8.4 | 12.6 | |||||||||||||||
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| 1 | Average rate: A$0.77 = US$1.00 (2016: A$0.75: US$1.00). |
| 2 | Average rate: R13.33 = US$1.00 (2016: R14.7 = US$1.00). |