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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Australian Money Market Divergence: Arbitrage Opportunity or Illusion?
1 Sep 2019
RDP
2019-09
Prior to the financial crisis, foreign exchange swaps required a minimum spread of around 15 basis points to break even at the estimated debt-to-equity ratio at that time (point ... In 2018, the minimum spread required by banks to break even on foreign
https://www.rba.gov.au/publications/rdp/2019/2019-09/full.html
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The Consequences of Low Interest Rates for the Australian Banking Sector
19 Dec 2022
RDP
PDF
1588KB
would cause only 20 basis points of any subsequent 25 basis point reduction to be passed through. ... point reduction in loss provisioning (compared with 7 basis points in Australia).
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-08.pdf
The Household Cash Flow Channel of Monetary Policy
16 Dec 2016
RDP
2016-12
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
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Does Monetary Policy Affect Non-mining Business Investment in Australia? Evidence from BLADE
21 Sep 2023
RDP
2023-09
Sources: ABS; Authors' calculations. Figure 4: Investment Response to 100 Basis Point Monetary Policy Shock. ... Sources: ABS; Authors' calculations. Figure 10: Investment Response to 100 Basis Point Monetary Policy Shock.
https://www.rba.gov.au/publications/rdp/2023/2023-09/full.html
Financial Stability Review - March 2024
26 Mar 2024
FSR
- March 2024
PDF
2619KB
https://www.rba.gov.au/publications/fsr/2024/mar/pdf/financial-stability-review-2024-03.pdf
Job Loss, Subjective Expectations and Household Spending
18 Aug 2021
RDP
2021-08
A 1 percentage point increase in the expected probability of job loss is associated with an increase of about 10 to 18 basis points in the actual probability of job loss. ... of the unemployed at a single point in time in any given survey year.
https://www.rba.gov.au/publications/rdp/2021/2021-08/full.html
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Credit and Monetary Policy: An Australian SVAR
1 Sep 2005
RDP
2005-06
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/2005/2005-06.html
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Box D: Stress Testing at the Reserve Bank
10 Feb 2020
FSR
October 2017
PDF
638KB
https://www.rba.gov.au/publications/fsr/2017/oct/pdf/box-d.pdf
The Australian Financial System
10 Sep 2008
FSR
– September 2008
compared with an average spread of less than 10 basis points in the first half of 2007 (Graph 30). ... States around 80 basis points higher than prior to the credit market turmoil.
https://www.rba.gov.au/publications/fsr/2008/sep/aus-fin-sys.html
Box C: Interest Rate Risk in the Australian Financial System
10 Feb 2020
FSR
April 2018
PDF
638KB
https://www.rba.gov.au/publications/fsr/2018/apr/pdf/box-c.pdf