BPS

The word "Basis Points" (abbreviated BPS) is used in finance frequently. Basis points are a unit of measurement that, in plain English, denotes slight variations in interest rates, yields, or other financial percentages. A basis point is 0.01%, or one hundredth of a percentage point. It is employed to signify a negligibly small shift in monetary values. For instance, if the interest rate on a loan rises by 25 basis points, it translates to a 0.25 percent increase in the rate.