Definitions for basis point
ba·sis point

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1. basis pointnoun

   One hundredth of one percentage point

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1. Basis point

   A basis point (often abbreviated as bp, often pronounced as "bip" or "beep") is one hundredth of 1 percentage point. The related term permyriad means one hundredth of 1 percent. Changes of interest rates are often stated in basis points. If an interest rate of 10% increased by 1 bp, it changed to 10.01%.

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1. Basis point

   A basis point is a unit equal to one hundredth of a percentage point, or one part per ten thousand, 1/10000. The same unit is also called a permyriad, literally meaning 'for myriad', and in that context is written with U+2031 ‱ per ten thousand sign which looks like a percent sign with two extra zeroes at the end. A basis point is defined as:−4¹ Basis points are used as a convenient unit of measurement in contexts where percentage differences of less than 1% are discussed. The most common example is interest rates, where differences in interest rates of less than 1% per year are usually meaningful to talk about. For example, a difference of 0.10 percentage points is equivalent to a change of 10 basis points. Like percentage points, basis points avoid the ambiguity between relative and absolute discussions about interest rates by dealing only with the absolute change in numeric value of a rate. For example, if a report says there has been a "1% increase" from a 10% interest rate, this could refer to an increase either from 10% to 10.1%, or from 10% to 11%. If, however, the report says there has been a "10 basis point increase" from a 10% interest rate, then we know that the interest rate of 10% has increased by 0.10% to a 10.1% rate.

How to pronounce basis point?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say basis point in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of basis point in Chaldean Numerology is: 8

2. Pythagorean Numerology

   The numerical value of basis point in Pythagorean Numerology is: 7

Examples of basis point in a Sentence

1. Deutsche Bank economists:

   We anticipate that the Fed will cut rates by at least 50 basis points over the coming months, with our new baseline forecast expecting 25 basis point cuts at the next two meetings in March and April.

2. Manuel Oliveri:

   There is some caution ruling markets as we have seen with the reaction to stock markets. Ultimately, the Fed/ECB divergence will be the focus, with markets already pricing in a 10 basis point deposit rate cut by the ECB and extension of the QE programme.

3. John McClain:

   I'd be looking for a 300 basis point spread or so in a new 10-year deal as fair value.

4. Cornerstone Macro economist Roberto Perli:

   I bet the statement will ... leave the door open to more, to at least another 25 (basis-point cut) down the road.

5. Seema Shah:

   As the equity market is now fully pricing in a 50 basis point cut, market disappointment could be significant ... And if the Fed follows through with a cut despite a brighter trade outlook? Beyond the knee-jerk euphoria, expect minimal market reaction – this last scenario is exactly what the market is already expecting.

References

1. ^ Wiktionary
   https://en.wiktionary.org/wiki/Basis_Point
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Basis_Point
3. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=basis point