™A rate moving from 4.00% to 4.25% rises 25 basis points, or 0.25 percentage points.
Bonds & Rates
Basis point
One hundredth of one percentage point; 100 basis points equals 1%.
Plain-English context
Put the definition to work.
Distinguish percentage points from percentage change: 4% to 5% is 100 basis points, but a 25% relative rate increase.
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