What does the term ‘basis point’ mean?
With all the Reserve Bank of Australia’s (RBA) movements lately, you might have heard basis point on the news a few too many times.
So what is a basis point?
A basis point is 0.01%
So for example if you’ve heard the RBA drop the rates by 25 basis points, it means they’ve dropped the rates by 0.25% so a basis point is 0.01%.
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