Comment Re:three words, one hyphen: (Score 1) 549
Using basis points removes the ambiguity when talking about fractions of percentages.
Consider: "The interest rate, previously 5%, has been raised by 1%". Does this mean the new interest rate is 6% (5 + 1), or 5.05% (5 * 1.01)?
If you say "The interest rate, previously 5%, has been raised by 100 basis points" then the only possible interpretation is that the new interest rate is 6%.