Management Glossary

  Search Results: basis point
basis point

0.01 percent (i.e., 1 percent  = 100 basis points). Thus, when it is said that an interest rate was raised 25 basis points, that means that one quarter of a percentage point was added to the interest rate.

This can be confusing if not expressed carefully. An interest rate that went from 2% to 2.5% increased 25% (i.e., one-quarter of the original 2%), but the rate when up by one-half of one percentage point, i.e, 50 basis points.

Contributed by: Managerwise Staff

Click on a letter to find terms starting with that letter:
0-9|A|B|C|D|E|F|G|H|I|J|K|L|M|N|O|P|Q|R|S|T|U|V|W|X|Y|Z\

You can also click here to see a list of all of the words in the glossary with links to the definitions.

Or, search the glossary:

Match: any word     all words

Help the Glossary Grow!

Click here
to add a definition. We credit contributors of accepted definitions with, at your option, an e-mail and/or Web link.