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 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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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 Impact of Monetary Policy on the Exchange Rate: A Study Using Intraday Data
1 Apr 2005
RDP
2005-02
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/2005/2005-02.html
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Consumer Payment Behaviour in Australia: Evidence from the 2019 Consumer Payments Survey
14 Sep 2020
RDP
2020-06
Via ATM. 100. 100. 80. 100. 100. Via cash out at point of sale. ... When measured as a percentage of the transaction value, the median surcharge was 1.5 per cent, which was 50 basis points higher than three years earlier, although in value terms,
https://www.rba.gov.au/publications/rdp/2020/2020-06/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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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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Data and Variables
1 Jul 2021
RDP
2021-07
t. m. measures bank b ′s advertised mortgage rate at the end of quarter t, minus the cash rate, in percentage points. ... In the first half of 2015, the cash rate is cut twice – by 25 basis points in both February and May – but it remained constant
https://www.rba.gov.au/publications/rdp/2021/2021-07/data-and-variables.html
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Results
31 Dec 2005
RDP
2005-04
it is not until year 6 that it even reaches 25 basis points. ... By contrast, in the β = 1.0 economy, the corresponding ‘ZLB effect’ is still negligible in year 4, and only reaches 26 basis points in year 6.
https://www.rba.gov.au/publications/rdp/2005/2005-04/results.html
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Identification and Inference under Narrative Restrictions
20 Oct 2023
RDP
PDF
1128KB
Section 4.1 considers whether NRare point or set identifying in a frequentist sense. ... Q) is point identifiedif the projection of Q onto its jth column vector is a singleton.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-07.pdf
Can We Use High-frequency Yield Data to Better Understand the Effects of Monetary Policy and Its Communication? Yes and No!
1 Apr 2023
RDP
2023-04
Table 1: Variation in Rates over Event Windows. By yield maturity, average absolute yield change, basis points. ... events. For example, Figures 1 and 2 show the yields, expected policy rates and premia just before and after the May 2016 monetary policy
https://www.rba.gov.au/publications/rdp/2023/2023-04/full.html
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