3 ms·
Technically, it does not, raising 0.25% is always in relation to the existing value of the thing, so increasing a percentage by a quarter of a percent would mea
by trelane 5y ago
Technically, it does not, raising 0.25% is always in relation to the existing value of the thing, so increasing a percentage by a quarter of a percent would mean increasing it by a quarter of a percent of its existing value.
On the other hand, "basis percentage points" means something absolute, not relative to the existing level.
Pedant out. :)
- trelane 5y agoObligatory Jayne: "let's see... A quarter percent of nothing, carry the nothing, is.. nothing!"
- HWR_14 5y agoPedantry is useless. It's very useful to know the difference between the two. It's similar to many other things where there are two concepts that people conflate into one word and then spend a long time complaining or creating humor about confusing the results.
- deleted 5y ago[deleted]
- monktastic1 5y agoThe claim wasn't that "raising by 25 bps" should be interpreted the same as "raising by .25%", it was: > 25 bps means 0.25%. In a sense, that is technically correct: it does refer to .25% -- not of the current value but of the 100% value.
- dmurray 5y agoWhile we're at it, we should remember that this isn't a unitless number although it's often confused for one. Interest rates are being raised by .25% per year.