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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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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
Introduction
21 Dec 2022
RDP
2022-08
Previous estimates suggest that if the cash rate were to fall 25 basis points from zero per cent, the deposit lower bound would cause only 20 basis points of this to ... The reversal rate is the point at which any further reduction in the central bank's
https://www.rba.gov.au/publications/rdp/2022/2022-08/introduction.html
The Literature through the Lens of Banks' Balance Sheets
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/the-literature-through-the-lens-of-banks-balance-sheets.html
Appendix A: Pass-through Lower Bound in BA-MARTIN
21 Dec 2022
RDP
2022-08
t. t. s. }. ]. Following a 100 basis point cash rate reduction, the maximum increase in quarterly credit growth is less than 1 percentage point, even after holding the cash rate at
https://www.rba.gov.au/publications/rdp/2022/2022-08/appendix-a.html