Search: basis point
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 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
Bulletin
29 Jan 2024
Bulletin
- January 2024
PDF
5775KB
https://www.rba.gov.au/publications/bulletin/2024/jan/pdf/bulletin-2024-01.pdf
The Economy and Financial Markets
10 Feb 2000
Bulletin
– February 2000
February. This takes the Federal Funds rate to 5 per cent, 100 basis points higher than the low point reached in late 1998. ... Graph 7. Table 3: Policy Interest Rates. Increases. since 1999. low Basis points.
https://www.rba.gov.au/publications/bulletin/2000/feb/1.html
Statement on Monetary Policy
10 Aug 2003
Bulletin
– August 2003
In the US, yields are now over 100 basis points above the troughs reached in early June. ... basis points rather than the 50 basis points that had been widely anticipated.
https://www.rba.gov.au/publications/bulletin/2003/aug/1.html
MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy
1 Aug 2019
RDP
2019-07
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, Equity Markets and the Information Effect
23 Mar 2021
RDP
2021-04
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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Identification and Inference under Narrative Restrictions
20 Oct 2023
RDP
PDF
1128KB
Section 4.1 considers whether NRare point or set identifying in a frequentist sense. ... Q) is point identifiedif the projection of Q onto its jth column vector is a singleton.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-07.pdf
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
The Value of Payment Instruments: Estimating Willingness to Pay and Consumer Surplus
30 Mar 2015
RDP
2015-03
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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The Consequences of Low Interest Rates for the Australian Banking Sector
21 Dec 2022
RDP
2022-08
only 20 basis points of any subsequent 25 basis point reduction to be passed through to banks' debt (including deposits) funding costs. ... a 3 basis point reduction in loss provisioning (compared with 7 basis points in Australia).
https://www.rba.gov.au/publications/rdp/2022/2022-08/full.html
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