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CEFR C1 — Advanced

Basis point

Definition

(formal, finance) A unit of measurement equal to one hundredth of one percent, used to express differences in interest rates or investment returns.

Example Sentences

1The central bank reduced the interest rate by 25 basis points to stimulate economic growth.
2Can you explain how a change of 50 basis points in the prime lending rate affects mortgage repayments?
3Investors closely watch the yield curve to anticipate changes in basis points and adjust their portfolios accordingly.
4A decrease of just 10 basis points in the inflation rate can have a significant impact on long-term bond prices.
5Analysts track the spread between two-year and ten-year Treasury yields, measured in basis points, to gauge market expectations of future interest rates.

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