Basis Point
One hundredth of a percentage point (0.01%), the standard unit for quoting interest-rate and yield changes.
Appears in these guides
Related terms
Related lessons
CPI (Consumer Price Index)
The Consumer Price Index is how a country actually measures inflation. Learn what the 'basket of goods' is, how a national statistics agency builds the number, the difference between headline and core inflation, why central banks target 2%, and why a CPI release can move markets in seconds.
GDP (Gross Domestic Product)
Gross Domestic Product is the single number that sums up the size of an economy. Learn the three ways it's measured, the crucial difference between real and nominal GDP, what growth and contraction mean, how it defines a recession, why investors track it — and the important things it leaves out.
Bonds
A bond is a tradable loan — and the second great asset class alongside shares. Learn the anatomy of a bond, the all-important inverse relationship between bond prices and interest rates, gilts vs corporates, credit and duration risk, and why bonds act as ballast in a portfolio.
Ironclad Research provides educational content only. Nothing on this platform is financial advice, a recommendation, or an offer to buy or sell any security. Always do your own research and consider professional advice before making financial decisions.