What is a basis point?

This is one hundredth of one percentage point (i.e. 0.01%).

This is one hundredth of one percentage point (i.e. 0.01%) and is used chiefly in expressing differences of interest rates.

For example 1bp = 0.01% and 75bp = 75 X 0.01% = 0.75%.

If the Bank of England’s current interest rate is 2.5% and is said to have been increased by 50bp then the new interest rate is 3.0% (calculation: 2.5% + (50 X 0.01%) or 2.5% + 0.5% = 3.0%)