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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
Anthony Brassil
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
Anthony Brassil
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
Anthony Brassil
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
Anthony Brassil
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