Prices & Inflation
Basis point
A basis point is one-hundredth of a percentage point (0.01%), used to describe small, precise changes in interest rates, yields, or spreads without the ambiguity of saying "percent." A central bank raising its policy rate from 5.00% to 5.25% has hiked by 25 basis points.
Why it matters
Rate-change figures on this platform are given in basis points to avoid the percent-of-a-percent confusion.
Also known as: bps, bp