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A comment on Federal Reserve to increase interest rates by 25 basis points.

Re:Federal Reserve to increase interest rates by 25 basis po... by toombowoombo on Wednesday March 22, 2023 @07:11PM (#35268344)
What are basis points?
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Re:Federal Reserve to increase interest rates by 25 basis po... by pstorm on Wednesday March 22, 2023 @07:13PM (#35268363)
It is 1/100 of a percent [1]. Just a different way of saying .25%

[1] https://en.wikipedia.org/wiki/Basis_point

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Re:Federal Reserve to increase interest rates by 25 basis po... by DANmode on Thursday March 23, 2023 @03:20AM (#35271460)
No additional meaning to finance people.

Far less meaningful for the average Joe.

Not "just" a different way, when framed.

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Re:Federal Reserve to increase interest rates by 25 basis po... by aaronrobinson on Wednesday March 22, 2023 @07:33PM (#35268549)
Aka bips
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Re:Federal Reserve to increase interest rates by 25 basis po... by tebs1200 on Thursday March 23, 2023 @07:22AM (#35273007)
The reason behind "Basis Points" is that saying something has increased by a percentage is ambiguous.

If interest rates are 5% and they are "increased by 0.25%", does that make them 5.25% (adding 0.25% of 100) or 5.0125% (adding 0.25% of 5).

Basis points are supposed to be an unambiguous way of explaining the increase.

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