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 Distributional Effects of Monetary Policy: Evidence from Local Housing Markets
1 Feb 2020
RDP
2020-02
The OLS estimates indicate that a 1 percentage point increase in income is associated with a 3.2 basis points larger negative response of housing prices two years after a percentage ... 100 basis point increase in cash rate, relative to median group, by
https://www.rba.gov.au/publications/rdp/2020/2020-02/full.html
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Appendix C: Additional Microdata Results
19 Dec 2023
RDP
2023-09
Sources: ABS; Authors' calculations. Figure C7: Investment Response to 100 Basis Point Monetary Policy Shock. ... Sources: ABS; Authors' calculations. Figure C8: Investment Response to 100 Basis Point Monetary Policy Shock.
https://www.rba.gov.au/publications/rdp/2023/2023-09/appendix-c.html
Demand in the Repo Market: Indirect Perspectives from Open Market Operations from 2006 to 2020
9 May 2024
RDP
PDF
4625KB
2 basis points below the overnight indexed swap (OIS) rate (Figure 3).11 This relationship between. ... a 2.5 basis point increase from 5 basis points to 7.5 basis points would be regarded as a significant.
https://www.rba.gov.au/publications/rdp/2024/pdf/rdp2024-03.pdf
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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The Algorithm
15 Dec 2016
RDP
2016-11
Figure 1: Daily Interbank Overnight Cash Rate. Note: Rounded to nearest basis point. ... payment and repayment of principal) with a third transaction that would imply an interest rate within 100 basis points of the target cash rate.
https://www.rba.gov.au/publications/rdp/2016/2016-11/algorithm.html
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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
The Evolution of Consumer Payments in Australia: Results from the 2022 Consumer Payments Survey
27 Nov 2023
RDP
2023-08
Most contactless payments were initiated by tapping a physical card on a point-of-sale terminal. ... When measured as a percentage of the transaction value, the median surcharge reported was 1.5 per cent, which was 50 basis points lower than three years
https://www.rba.gov.au/publications/rdp/2023/2023-08/full.html
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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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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
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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