basis point

noun

: one hundredth of one percent (as in the yield of an investment)

Examples of basis point in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
After the latest 25 basis point (0.25%) rate cut on December 18, the Fed has decreased short-term interest rates by a total of two percentage points. Bill Stone, Forbes, 28 Dec. 2024 Yields on Germany’s 10-year Bunds were up by 5 basis points at 1:36 p.m. in London, reaching 2.384% — their highest level in a month. Chloe Taylor, CNBC, 27 Dec. 2024 Capitalize on high interest rates: Best current CD rates The U.S. central bank last week cut rates by 25 basis points as expected and Fed Chair Jerome Powell said more reductions in borrowing costs now hinge on further progress in lowering stubbornly high inflation. Karen Brettell, USA TODAY, 26 Dec. 2024 In response to Fed forecasts of fewer rate cuts, stronger economic growth, and higher inflation expectations in 2025, the 10-year yield popped up more than three basis points, hovering around 4.5%. Rocio Fabbro, Quartz, 19 Dec. 2024 See all Example Sentences for basis point 

Word History

First Known Use

1962, in the meaning defined above

Time Traveler
The first known use of basis point was in 1962

Dictionary Entries Near basis point

Cite this Entry

“Basis point.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/basis%20point. Accessed 2 Jan. 2025.

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