Basis points, or bps
Māori translation:
Definition
Basis points (bps) are a common way in finance to express small percentages. One basis point equals 0.01%, so 100 basis points equal 1%. It’s a handy unit for discussing changes in interest rates, fees, or investment returns. For example, if a bond yield increases by 50 bps, it went up by 0.50%. Investors and analysts use basis points to communicate and analyse even the smallest percentage changes in financial metrics.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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