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RBA Glossary definition for basis point

basis point – A basis point is 1/100th of 1 per cent or 0.01 per cent, so 100 basis points (bps) is equal to 1 percentage point. The term is used in money and securities markets to define differences in interest or yield. If an interest rate were to increase from 2 per cent to 3 per cent, it is said to have risen by 100 basis points (bps) or one percentage point.

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Monetary Policy, Equity Markets and the Information Effect

23 Mar 2021 RDP 2021-04
Calvin He
For the one-year-ahead forecast, a 100 basis point increase in the OIS curve causes expected earnings growth of the ASX 200 to fall by 1.9 percentage points. ... The one-year-ahead earnings growth forecasts for the materials sector fall by 9.4 percentage
https://www.rba.gov.au/publications/rdp/2021/2021-04/full.html
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Monetary Policy During COVID

6 May 2021 Speech
Guy Debelle
Speech delivered by Guy Debelle, Deputy Governor, Shann Memorial Lecture, Perth
https://www.rba.gov.au/speeches/2021/sp-dg-2021-05-06.html

The Evolving Structure of the Australian Financial System | Conference – 1996

9 Jul 1996 Conferences
Malcolm Edey and Brian Gray
2. Overview of the Main Trends. 2.1 The Starting Point: The Financial System in the 1950s and 1960s. ... By comparison, rough estimates suggest that mortgage managers can deliver a residential mortgage product at the bank bill rate plus around 150 to 200
https://www.rba.gov.au/publications/confs/1996/edey-gray.html

MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy

1 Aug 2019 RDP 2019-07
Alexander Ballantyne, Tom Cusbert, Richard Evans, Rochelle Guttmann, Jonathan Hambur, Adam Hamilton, Elizabeth Kendall, Rachael McCririck, Gabriela Nodari and Daniel Rees
We impose a small coefficient on this latter variable, which implies that a 100 basis point decrease in interest rates raises the long-run level of consumption by 0.05 per ... The long run component of the non-mining business investment equation is based
https://www.rba.gov.au/publications/rdp/2019/2019-07/full.html
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Monetary Policy in 2020

24 Nov 2020 Speech
Guy Debelle
Speech delivered by Guy Debelle, Deputy Governor, Australian Business Economists, Virtual
https://www.rba.gov.au/speeches/2020/sp-dg-2020-11-24.html

The Impact of Interest Rates on Bank Profitability: A Retrospective Assessment Using New Cross-country Bank-level Data

8 Jun 2023 RDP PDF 1310KB
interest rates results in a 5 basis point decline in net interest margins in the short run. ... during normal times, a 100 basis point reduction in short-term interest rates reduces smaller banks’.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-05.pdf

Opening Statement to the House of Representatives Standing Committee on Economics

8 Feb 2024 Speech PDF 262KB
Speech - 2024
https://www.rba.gov.au/speeches/2024/pdf/sp-gov-2024-02-09.pdf

The Value of Payment Instruments: Estimating Willingness to Pay and Consumer Surplus

30 Mar 2015 RDP 2015-03
Tai Lam and Crystal Ossolinski
We estimate that on average credit card holders place a value of 0.6 basis points on every 1 basis point of effective rewards rebate. ... of 13 basis points per transaction.
https://www.rba.gov.au/publications/rdp/2015/2015-03.html
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Appendix B: Aggregate Data Results

19 Dec 2023 RDP 2023-09
100 basis point monetary policy shock, VAR model. Notes: Small VAR with (log) real trade-weighted index, (log) consumption, (log) non-mining business investment, (log) dwelling investment and cash rate. ... Sources: Authors' calculations; Morningstar.
https://www.rba.gov.au/publications/rdp/2023/2023-09/appendix-b.html

Designing Inflation Targets

7 Dec 2006 Conferences PDF 120KB
RBA Conference Volume 1997
https://www.rba.gov.au/publications/confs/1997/pdf/haldane.pdf