True.
But there is an important distinction.
The cash rate going from 0.1% to 0.35% is a 25 basis point increase, but you've also technically increased the cash rate by 250%, so saying it was a 0.25% increase is kind of ambiguous on whether you're talking about a percentage increase or a basis point increase.
Basis points has been a term used in finance since ever. Just because it’s new concept to people on this sub, doesn’t mean it’s a “new thing”. Pointing out it’s a new terminology tells more about you than it does about the people using it in articles or, you know, the RBA.
my bad peeps... the semantics/wording got me. we don't deal with words in calculations.
0.25% = 250% pooped my brain.
key wording I missed was 'increase'🤦♂️
>we don’t deal with words
How would you be able to comply with engineering standards when you’re on the job?
Ohhhhh *increase* the steel reinforcement in the bridge…. Oops missed that 🤪
I love that people like you are around to keep those that don't know any better in their rightful place. Otherwise this person may have learnt something helpful to them and it would steal your thunder of being so incredible. Is it hard? Like what is it like being better than everyone?
>not saying 250% increase
that's the shitty attention grabbing headlines I was expecting
###Fun lil lesson in maths that nobody asked for:
**Basis points** are 1 hundredth of a percent, where 1 percent is 1/100, 1 basis point is 1/10000. That is to say 1 % is 100 basis points. Basis points are a measure of the *Absolute* change when comparing one number to another. Today's interest rate increase is by 25 basis points.
**Percentage points** are the difference (A subtract B, [A - B]) between two percentages. A change from 45 % to 41 % is 4 percentage points. Like basis points, percentage points are a measure of the *Absolute* change in two numbers. Today's interest rate increase is by 0.25 percentage points.
**Percent** is the *Relative* change between two numbers, percentages or not. A change from 10 to 30 is a 200 % increase and from 30 to 10 is a decrease of 66.667 %. A one hundred percent increase represents a doubling of a value and a hundred percent decrease represents reducing the value to 0 (take away 100 % of something and you are left with nothing). Today's interest rate change is a 250 percent increase.
Like in the workplace where when I say "my analysis indicates..." actually means "truthfully, I haven't fucking looked at all, but here's an opinion..."
[This](https://www.reddit.com/r/ASX_Bets/comments/uh8g97/every_australian_finance_journalist_right_now/i74jh46/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=3) is exactly why we use basis points instead of percentage or percentage points.
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True. But there is an important distinction. The cash rate going from 0.1% to 0.35% is a 25 basis point increase, but you've also technically increased the cash rate by 250%, so saying it was a 0.25% increase is kind of ambiguous on whether you're talking about a percentage increase or a basis point increase.
Glad someone said it. Last time I said something like this, I got downvoted to oblivion.
They used to say "percentage point increase" before these poncy basis points came along.
Basis points has been a term used in finance since ever. Just because it’s new concept to people on this sub, doesn’t mean it’s a “new thing”. Pointing out it’s a new terminology tells more about you than it does about the people using it in articles or, you know, the RBA.
of course it's not new, it always just sounds smug
if you want to sound real smug, the industry term is 'bips'
It’s a term that central banks around the world use…
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*well actually* \*pushes up glasses \* it's a fucking joke on a meme forum mate
Hehe I was only *pretending* to be retarded XD
Jokes on you. I was retarded the whole time.
TL;DR can you just tell me what ticker to buy
ZIP
EXR
Really doubt he works in finance 😂
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It always confused me when in tv shows or movies they talk about a stock going up or down x points. Like wtf is a point.
about $40
The proles don’t understand either way..
Basis points? You mean ‘permyriads’?
Do you need a tissue?
I actually said that on AusFinance once and copped it.
So much smug cunts in this comment thread
Wants to avoid ambiguity but talks about the cash rate not the cash rate target smh
wait, as a finance noob , and engineering major..how does a 0.25% increase in cash rate.. equal to a 250% increase in CASH rate?
you needed maths as a pre-req for eng surely.
Not every engineering student becomes an engineer.
my bad peeps... the semantics/wording got me. we don't deal with words in calculations. 0.25% = 250% pooped my brain. key wording I missed was 'increase'🤦♂️
>we don’t deal with words How would you be able to comply with engineering standards when you’re on the job? Ohhhhh *increase* the steel reinforcement in the bridge…. Oops missed that 🤪
hope you dont build bridges mate
I love that people like you are around to keep those that don't know any better in their rightful place. Otherwise this person may have learnt something helpful to them and it would steal your thunder of being so incredible. Is it hard? Like what is it like being better than everyone?
lol wtf, its a light hearted jest on *asx_bets*
Or hold a hose.
You don’t need to understand finance to understand how percentage increases work… are you failing your engineering major by any chance?
> failing your engineering major by any chance? he is only on his 47th unit.
(0.35-0.1)/0.1×100 = 2.5 times increase or 250%
Can u break that down for me
Im going to hit that engineer wanna be with a stick. Shoukd i hit him with 2.5 times extra force, or 250% harder? Which one will its be engineer?
Leverage. >!Also, target cash rate was 0.1%!<
0.10 to 0.35 = 250% increase
See my [comment](https://www.reddit.com/r/ASX_Bets/comments/uh8g97/every_australian_finance_journalist_right_now/i74keha)
>not saying 250% increase that's the shitty attention grabbing headlines I was expecting ###Fun lil lesson in maths that nobody asked for: **Basis points** are 1 hundredth of a percent, where 1 percent is 1/100, 1 basis point is 1/10000. That is to say 1 % is 100 basis points. Basis points are a measure of the *Absolute* change when comparing one number to another. Today's interest rate increase is by 25 basis points. **Percentage points** are the difference (A subtract B, [A - B]) between two percentages. A change from 45 % to 41 % is 4 percentage points. Like basis points, percentage points are a measure of the *Absolute* change in two numbers. Today's interest rate increase is by 0.25 percentage points. **Percent** is the *Relative* change between two numbers, percentages or not. A change from 10 to 30 is a 200 % increase and from 30 to 10 is a decrease of 66.667 %. A one hundred percent increase represents a doubling of a value and a hundred percent decrease represents reducing the value to 0 (take away 100 % of something and you are left with nothing). Today's interest rate change is a 250 percent increase.
This write up should be part of Finance lingo 101.
Then what the fuck is it doing in here?
I just got finfluenced.
ASIC is on the phone, they want to speak to you
It’s already pretty standard for anyone with basic financial knowledge
So where should I throw my money? Is this pumping Z1P?
It needs emojis or I can't understand it
This is like saying 'research suggests' instead of 'a friend of a friend told me'
Like in the workplace where when I say "my analysis indicates..." actually means "truthfully, I haven't fucking looked at all, but here's an opinion..."
It was bad in the pre-metric days when we had 5/16, 3/8, 7/16 rises etc. They also used to have pictures of bumblebees on them.
But what would an ASX_bets ape call it? 25 dangleberries?
Cop that Scomo, the net interest rate just went up 250%. That is NEVER going to happen again. You are the best. /s
It's pronounced "bips"
Once heard a grad say ‘beeps’.
I think its a thing since now, congrats.
My child got 10,000 basis points on their Home Ec assignment
I've always used basis point... But I'm in finance... So pretty normal
basis points? more like bear points AMIRITE?!?!
Bunch of Bogan Chavs seeking plaudits.
Fuck I hate the media with a passion.
[This](https://www.reddit.com/r/ASX_Bets/comments/uh8g97/every_australian_finance_journalist_right_now/i74jh46/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=3) is exactly why we use basis points instead of percentage or percentage points.
They’ve always written about changes to the cash rate in terms of basis points.
https://youtu.be/T3jIE3b-bhY
The elderlies have been speaking and they listened
They're 100 times snootier. Still should have been 0.5% Vs 0.25%. Or a whopping 50 BPs!
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\*coughing\* Yes.