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The 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 c
by monktastic1 5y ago
The 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.