basis point


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

Example Sentences

Recent Examples on the Web The federal funds rate will rise another 25 basis points, or one-quarter percentage point, in an effort to bring inflation down to the 2 percent goal. Patrick Horan, National Review, 22 Mar. 2023 Thirty to 40 basis points is equal to 0.3% to 0.4%. Michael R. Wickline, Arkansas Online, 7 Mar. 2023 The Fed this week implemented another 75 basis point hike. Nina Trentmann, WSJ, 4 Nov. 2022 The Fed is expected to announce later on Wednesday its fourth straight 75 basis point interest rate hike, with many investors looking for any clue policymakers are pivoting from the current tightening cycle that has sent stock markets tumbling last month to two-year lows. Christiaan Hetzner, Fortune, 2 Nov. 2022 The 75 basis point interest rate hike announced June 15 was a good change from older, more gradual policies. Bill Conerly, Forbes, 15 June 2022 Some economists including Jason Furman, an Obama administration economic adviser, are predicting a 25 basis point increase, smaller than what many analysts had forecasted before the banking crisis. Bytristan Bove, Fortune, 22 Mar. 2023 Barring further shocks before its March meeting, the Fed should continue with its plans to hike rates — probably by a moderate 25 basis points. The Week Staff, The Week, 18 Mar. 2023 Goldman Sachs analysts even predicted this week that the Fed wouldn’t hike at all in March, a turnaround from its prior prediction of a 25 basis point hike. Nate Dicamillo, Quartz, 16 Mar. 2023 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'basis point.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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.” Dictionary, Merriam-Webster, Accessed 4 Jun. 2023.

Last Updated: - Updated example sentences
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