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 Transmission of Monetary Policy through Banks' Balance Sheets | Conference – 2018
12 Apr 2018
Conferences
On average since 2003, intermediate pass-through to these non-discretionary components has been 103 to 109 basis points per 100 basis point cash rate change. ... Based on these estimates, a 100 basis point cut in the cash rate is expected to reduce
https://www.rba.gov.au/publications/confs/2018/brassil-cheshire-muscatello.html
The Evolving Structure of the Australian Financial System | Conference – 1996
9 Jul 1996
Conferences
2. Overview of the Main Trends. 2.1 The Starting Point: The Financial System in the 1950s and 1960s. ... By comparison, rough estimates suggest that mortgage managers can deliver a residential mortgage product at the bank bill rate plus around 150 to 200
https://www.rba.gov.au/publications/confs/1996/edey-gray.html
Globalisation, Inequality and the Rich Countries of the G-20: Evidence from the Luxembourg Income Study (LIS) | Conference – 2002
27 May 2002
Conferences
ease of understanding), they have the disadvantage of focusing on only a few points in the distribution and lack a normative basis. ... For most nations, LIS has few data points. Moreover, in choosing the best data for comparisons at a point in time,
https://www.rba.gov.au/publications/confs/2002/smeeding.html
Capital Flows, Hedge Funds and Market Failure: A Hong Kong Perspective | Conference – 1999
9 Aug 1999
Conferences
The risk premium on the Hong Kong dollar, as measured by the interest rate premium over the US dollar for three-month money, fell from a high of 1250 basis points ... in August to 45 basis points in December 1998, which was comparable to the pre-crisis
https://www.rba.gov.au/publications/confs/1999/yam.html
What the Campbell Committee Expected | Conference – 1991
21 Jun 1991
Conferences
system. Certainly, the Committee underestimated the extent to which this volatility would increase over the 1980s, a point discussed below. ... The examples illustrate two points. First, the private sector will generate changes which tend to increase the
https://www.rba.gov.au/publications/confs/1991/valentine.html
Recent Developments in Federal Reserve System Liquidity and Reserve Operations | Conference – 2008
14 Jul 2008
Conferences
From September 2007 to April 2008, the Federal Open Market Committee (FOMC) reduced the target for the nominal overnight federal funds rate by 325 basis points. ... The rate spread was reduced further to 25 basis points and term loans extended to up to
https://www.rba.gov.au/publications/confs/2008/hilton.html
Monetary Policy and Financial Stability | Conference – 2017
16 Mar 2017
Conferences
At that point, the probability is reduced by 0.04 to 0.3 percentage points following a 100 basis point interest rate hike for a year, given the range of effects ... Meanwhile, the earlier analysis suggested that a 100 basis point increase in rates is
https://www.rba.gov.au/publications/confs/2017/dell-ariccia-habermeier-haksar-mancini-griffoli.html
A Perspective on Monetary Policy Transparency and Communication | Conference – 2004
9 Aug 2004
Conferences
Two points are worth noting, in passing, about the concept of goal transparency. ... b). na. 2.6. 2.2. 1.2. 90-day bill yield Average absolute daily change, basis points.
https://www.rba.gov.au/publications/confs/2004/edey-stone.html
Is Monetary Policy Less Effective When Interest Rates Are Persistently Low? | Conference – 2017
16 Mar 2017
Conferences
For Germany, Busch and Memmel (2015) argue that, in normal interest rate environments, the long-run effect of a 100 basis point change in the interest rate on net interest margins ... In the recent low interest rate environment, by contrast, they find
https://www.rba.gov.au/publications/confs/2017/borio-hofmann.html
Twenty-five Years of Inflation Targeting in Australia | Conference – 2018
12 Apr 2018
Conferences
I will return to this point later in discussing some of the current challenges. ... But inflation was still at its post-recession lows of 2 per cent when the RBA increased the cash rate by 275 basis points in three moves over the second half
https://www.rba.gov.au/publications/confs/2018/debelle.html