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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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The Algorithm

15 Dec 2016 RDP 2016-11
Anthony Brassil, Helen Hughson and Mark McManus
Figure 1: Daily Interbank Overnight Cash Rate. Note: Rounded to nearest basis point. ... payment and repayment of principal) with a third transaction that would imply an interest rate within 100 basis points of the target cash rate.
https://www.rba.gov.au/publications/rdp/2016/2016-11/algorithm.html

Appendix C: Expanding the Interest Rate Range

15 Dec 2016 RDP 2016-11
Anthony Brassil, Helen Hughson and Mark McManus
However, after extracting the level effect, the daily lending correlation is lower with a 1 basis point range than with a 0 basis point range (by 0.36 percentage points), while ... Allowing for a 5 basis point range unambiguously worsens the algorithm's
https://www.rba.gov.au/publications/rdp/2016/2016-11/appendix-c.html

Identifying Interbank Loans from Payments Data

1 Dec 2016 RDP 2016-11
Anthony Brassil, Helen Hughson and Mark McManus
The RBA pays daily interest on ‘surplus’ ESA balances at 25 basis points below the target cash rate. ... Figure 1: Daily Interbank Overnight Cash Rate. Note: Rounded to nearest basis point.
https://www.rba.gov.au/publications/rdp/2016/2016-11/full.html

Accuracy of the Algorithm

15 Dec 2016 RDP 2016-11
Anthony Brassil, Helen Hughson and Mark McManus
With IBOC loans almost always occurring at the target cash rate, we are able to set our implied interest rate range to 0 basis points (around the target cash rate), so
https://www.rba.gov.au/publications/rdp/2016/2016-11/accuracy-of-the-algorithm.html

The Australian Payments System and IBOC Market

15 Dec 2016 RDP 2016-11
Anthony Brassil, Helen Hughson and Mark McManus
basis points above the target cash rate). ... The RBA pays daily interest on ‘surplus’ ESA balances at 25 basis points below the target cash rate.
https://www.rba.gov.au/publications/rdp/2016/2016-11/australian-payments-system-and-iboc-market.html

Appendix B: Detailed Description of the Algorithm

15 Dec 2016 RDP 2016-11
Anthony Brassil, Helen Hughson and Mark McManus
point within a set repayment period (the baseline algorithm searches over the following 15 days). ... 0 basis points around the target cash rate) and accounting for any changes in the target cash rate:.
https://www.rba.gov.au/publications/rdp/2016/2016-11/appendix-b.html