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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 Household Cash Flow Channel of Monetary Policy

16 Dec 2016 RDP 2016-12
Gianni La Cava, Helen Hughson and Greg Kaplan
The central estimates imply that lowering interest rates by 100 basis points would be associated with an increase in aggregate household expenditure of about 0.1 to 0.2 per cent
https://www.rba.gov.au/publications/rdp/2016/2016-12.html

Quantifying the Aggregate Cash Flow Channel

23 Dec 2016 RDP 2016-12
Gianni La Cava, Helen Hughson and Greg Kaplan
Sources: Authors' calculations; HILDA Survey Release 14.0. A 100 basis point reduction in interest rates would be associated with an average increase in interest-sensitive cash flows per annum of ... So, assuming no change in spending on non-durable
https://www.rba.gov.au/publications/rdp/2016/2016-12/quantifying-the-aggregate-cash-flow-channel.html

The Household Cash Flow Channel of Monetary Policy

1 Dec 2016 RDP 2016-12
Gianni La Cava, Helen Hughson and Greg Kaplan
The household cash flow channel is reasonably strong at an aggregate level, with a 100 basis point reduction in interest rates being associated with a 0.1 to 0.2 per ... Sources: Authors' calculations; HILDA Survey Release 14.0. A 100 basis point
https://www.rba.gov.au/publications/rdp/2016/2016-12/full.html

Introduction

23 Dec 2016 RDP 2016-12
Gianni La Cava, Helen Hughson and Greg Kaplan
The household cash flow channel is reasonably strong at an aggregate level, with a 100 basis point reduction in interest rates being associated with a 0.1 to 0.2 per
https://www.rba.gov.au/publications/rdp/2016/2016-12/introduction.html

Data

23 Dec 2016 RDP 2016-12
Gianni La Cava, Helen Hughson and Greg Kaplan
Such prepayments can be made on a regular basis, or as a one-off excess repayment. ... In practice, identifying these constrained households is challenging using annual (point-in-time) survey data.
https://www.rba.gov.au/publications/rdp/2016/2016-12/data.html

Conclusion

23 Dec 2016 RDP 2016-12
Gianni La Cava, Helen Hughson and Greg Kaplan
The central estimates indicate that a 100 basis point cut in interest rates is associated with a 0.1 to 0.2 per cent increase in household spending in aggregate.
https://www.rba.gov.au/publications/rdp/2016/2016-12/conclusion.html

A Closer Look at the Borrower Cash Flow Channel

23 Dec 2016 RDP 2016-12
Gianni La Cava, Helen Hughson and Greg Kaplan
mortgages. Between 2010 and 2014, outstanding mortgage lending rates declined by between 150 and 200 basis points. ... Together, the results point to the observed negative relationship between spending and required repayments being due to a cash flow
https://www.rba.gov.au/publications/rdp/2016/2016-12/closer-look-at-the-borrower-cash-flow-channel.html