Tag Archives: interest rates

What is 100 Basis Points (BPS) ?

100 basis points is one percentage point(1 % ).

A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security.

RBI hikes repo rate to 8% – to contain rising inflation

RBI unexpectedly raised interest rates for the first time in 15 months.

As part of its on-going effort to contain rising inflation, The Reserve Bank of India has decided to increase the repo rate by 25 basis points to 8.00 percent from 7.75 percent with immediate effect.

The repo rate is the rate at which RBI lends money to banks under its liquidity adjustment facility.

Money market fund : Safest and most secure

A Money market fund, also known as principal stability funds, is a type of mutual fund that is required by law to invest in low-risk securities. These funds have relatively low risks compared to other mutual funds and pay dividends that generally reflect short-term interest rates.

Money market funds generally invest in

  • Government securities
  • Certificates of deposits