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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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BA-MARTIN in Detail
18 Jan 2022
RDP
2022-01
debt funding costs by 10 basis points; we calibrate our model to match this estimate. ... The cash rate is held constant following the initial policy response to the shock (125 basis points, as in the stress testing exercise).
https://www.rba.gov.au/publications/rdp/2022/2022-01/ba-martin-in-detail.html
MARTIN Gets a Bank Account: Adding a Banking Sector to the RBA's Macroeconometric Model
18 Jan 2022
RDP
2022-01
debt funding costs by 10 basis points; we calibrate our model to match this estimate. ... The cash rate is held constant following the initial policy response to the shock (125 basis points, as in the stress testing exercise).
https://www.rba.gov.au/publications/rdp/2022/2022-01/full.html
How Might COVID-19 Have Affected the Banking Sector and What Feedback Would This Have Had on the Real Economy?
18 Jan 2022
RDP
2022-01
When raising rates on all loans, achieving the capital ratio path shown in Figure 6 requires banks to increase their lending rates by 66 basis points. ... When banks spread the credit supply response across all loans, the resulting increase in lending
https://www.rba.gov.au/publications/rdp/2022/2022-01/how-might-covid-19-have-affected-the-banking-sector-and-what-feedback-would-this-have-had-on-the-real-economy.html
How Does the Pass-through of Monetary Policy Change with the State of the Economy?
18 Jan 2022
RDP
2022-01
The pass-through of changes in the cash rate to lending rates in MARTIN has historically been one-for-one – that is, a 25 basis point decline in the cash rate ... reduces lending rates by 25 basis points – irrespective of the level of the cash rate.
https://www.rba.gov.au/publications/rdp/2022/2022-01/how-does-the-pass-through-of-monetary-policy-change-with-the-state-of-the-economy.html