The reason behind "Basis Points" is that saying something has increased by a percentage is ambiguous. If interest rates are 5% and they are "increased by 0.25%

The reason behind "Basis Points" is that saying something has increased by a percentage is ambiguous. If interest rates are 5% and they are "increased by 0.25%", does that make them 5.25% (adding 0.25% of 100) or 5.0125% (adding 0.25% of 5). Basis points are supposed to be an unambiguous way of explaining the increase.