5 ms·
The raise is 75 bps not 0.75%.
by SnowHill9902 4y ago
The raise is 75 bps not 0.75%.
- matdehaast 4y agoIsn't that the same thing?
- scrlk 4y agoUsing percentages rather than basis points can be ambiguous. E.g. "1% increase from a 1% rate". Does this mean 1.01% (relative increase) or 2% (absolute increase)?
- matdehaast 4y agoFair enough, I've never heard rate increases discussed in relative terms. The context matters in the case.
- Vecr 4y ago75 BPS is 0.75% of the total or "100%", not of the current value. BPS makes it more clear that the increase each time is linear, so another 75 BPS will be the same absolute percentage as this 75 BPS.
- drewbailey 4y ago75 basis points == 0.75%
- prepend 4y agoTrue
- deleted 4y ago[deleted]
- deleted 4y ago[deleted]
- kgwgk 4y agoThere is not a single person on the face of Earth who - knows what basis points are and - would interpret that headline as “new_rate = old_rate * 1.0075”
- SnowHill9902 4y agoDoesn’t make it right.
- kgwgk 4y agoMakes it irrelevant. Headlines often commit much worse offences than using "0.75%" a shorthand for "three-quarters of a percentage point" anyway.