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
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The cut to the overnight cash rate was larger than the 25 basis points expected by economists polled by Reuters. Lim Hui Jie, CNBC, 8 Oct. 2025 At its last meeting, the FOMC capitulated and axed interest by 25 basis points, creating cheaper borrowing for consumers, businesses, and the government itself. Eleanor Pringle, Fortune, 7 Oct. 2025 But the company’s gross margin decreased 320 basis points to 42.2%, following a 440-basis-point fall in the preceding three-month period. CNN Money, 1 Oct. 2025 The Federal Reserve lowered its benchmark interest rate by 25 basis points last week, citing softness in the labor market. Amanda Castro, MSNBC Newsweek, 25 Sep. 2025 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

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Cite this Entry

“Basis point.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/basis%20point. Accessed 13 Oct. 2025.

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