BPS

BPS, or Basis Points, is a way to measure changes in interest rates, percentages, or financial percentages. One basis point equals 0.01%, or one-hundredth of a percent. For example, if an interest rate increases from 3.00% to 3.25%, that's a 25 basis point change. BPS helps professionals communicate small percentage changes clearly without confusion. They're especially useful in finance and banking when discussing rates, spreads, or returns, providing precision and simplicity in reporting relative changes.