The financial encyclopedia uses cookies to improve your user experience. Find out more here!



 

 


 

Basis point
 

 

A commonly used unit of measurement of changes or differences in interest rates. It is defined as 1 per cent of 1 percentage point, so that a 50 basis points rise in the rate of interest means a rise by 0.5 percentage points.

 

Reference: Oxford Press Dictonary of Economics, 5th edt.