What is a Basis Point?
A basis point is one hundredth of a percent, equaling 0,01% or 0,0001.
This is a term that is widely used in financial markets and financial reporting.
For example:
When we say ‘The FED has raised interest rates with 75bp(s)’, we’re saying that the federal reserve has raised interest rates with 0,75% or 0,0075.
