basis point

noun

: one hundredth of one percent (as in the yield of an investment)

Examples of basis point in a Sentence

Recent Examples on the Web
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But with the chances of a Fed rate cut later this year highly diminished now and, with the reality that a cut (if it is issued) is likely to be by just 25 basis points, these estimates are unlikely to change dramatically, either. Matt Richardson, CBS News, 2 Apr. 2026 Gross margins are expected to improve sequentially but still be down about 25 to 75 basis points year over year, including a 250-basis point headwind from tariffs. Jeff Marks, CNBC, 31 Mar. 2026 The bank had been widely expected to cut rates by at least three times, or by a total of 75 basis points, until strikes erupted at the end of last month. Tiisetso Motsoeneng, semafor.com, 27 Mar. 2026 Yields on the 7-year note are up 36 basis points since the last auction, in February, Reuters reported. Francesca Chambers, USA Today, 27 Mar. 2026 See All Example Sentences for basis point

Word History

First Known Use

1962, in the meaning defined above

Time Traveler
The first known use of basis point was in 1962

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Cite this Entry

“Basis point.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/basis%20point. Accessed 4 Apr. 2026.

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