Is 'quarter point' the same as '25 basis points'?

Yes, they are exactly equivalent. One percentage point equals 100 basis points, so a quarter point (0.25%) equals 25 basis points.

Can 'quarter point' be used outside of finance?

It is extremely rare. Its primary and almost exclusive domain is finance and economics, specifically regarding interest rates, yields, and percentages.

Should it be hyphenated?

It is typically hyphenated when used as a compound adjective before a noun ('a quarter-point increase'). It is not hyphenated when used as a noun phrase following a verb ('raised by a quarter point').

What is the opposite of a quarter-point hike?

A quarter-point cut or reduction. In terms of magnitude, the opposite could be 'no change' or a larger move like a 'half-point cut'.

quarter point

C1/C2

UK/ˌkwɔː.tə ˈpɔɪnt/US/ˌkwɔr.t̬ɚ ˈpɔɪnt/

Formal, Technical, Financial

My Flashcards

Definition

Meaning

A unit of measurement equal to one quarter of one percent (0.25%), most commonly used to describe changes in interest rates or yields.

In finance, a change of 0.25% in an interest rate, yield, or other percentage-based metric. May also refer to the smallest typical increment by which central banks adjust benchmark rates.

Linguistics

Semantic Notes

Almost exclusively used in financial and economic contexts. The term emphasizes precision in small increments of change. While 'quarter' suggests 0.25, the phrase functions as a single lexical unit for this specific measurement.

Dialectal Variation

British vs American Usage

Differences

Usage is identical in meaning and context between UK and US financial English.

Connotations

Conveys precision, formal policy decisions (by central banks), and market sensitivity. A quarter-point move is seen as a standard, measured adjustment.

Frequency

Very high frequency in financial news reporting, central bank communications, and market analysis. Rare outside of economics/finance.

Vocabulary

Collocations

strong

raise by a quarter pointcut by a quarter pointa quarter-point increasea quarter-point hikea quarter-point reduction

medium

move of a quarter pointadjust by a quarter pointquarter-point changequarter-point risequarter-point fall

weak

expect a quarter pointforecast a quarter pointsignal a quarter pointdebate a quarter point

Grammar

Valency Patterns

[Central Bank] + VERB (raised/cut) + interest rates + by + a quarter point.The + NOUN (move/adjustment/change) + was + a quarter point.Analysts + VERB (expect/anticipate) + a quarter-point + NOUN (hike/cut).

Vocabulary

Synonyms

Strong

25 bps

Neutral

0.25%twenty-five basis points

Weak

a small incrementa modest adjustment

Vocabulary

Antonyms

half pointfull percentage pointno change

Usage

Context Usage

Business

The central bank is widely expected to announce a quarter-point hike at its next meeting.

Academic

The model suggests a quarter-point reduction in the policy rate would stimulate investment by 0.3%.

Everyday

(Rare in everyday conversation) 'The news said mortgage rates might go up by a quarter of a percent.'

Technical

The 2-year Treasury yield rose 4.3 bps, while the 10-year was up just a quarter point on the day.

Examples

By Part of Speech

noun

British English

The Monetary Policy Committee implemented a quarter point rise.
Market consensus is firmly for a quarter point this month.

American English

The Federal Reserve announced a quarter point cut.
The move, a quarter point, was seen as dovish.

Examples

By CEFR Level

Interest rates increased by a quarter point yesterday.

Following the inflation data, analysts now predict a quarter-point hike in September.
The bank's decision to raise rates by a quarter point was widely anticipated.

The ECB's Governing Council opted for a more dovish stance, delivering only a quarter-point increase despite persistent core inflation pressures.
Bond markets have fully priced in a quarter-point tightening, so the focus will be on the forward guidance in the statement.

Learning

Memory Aids

Mnemonic

Think of a dollar: a QUARTER is 25 cents. A QUARTER POINT is 0.25 (25/100) of a percent.

Conceptual Metaphor

MEASUREMENT IS DISTANCE (moving rates up or down by points).

Watch out

Common Pitfalls

Translation Traps (for Russian speakers)

Avoid translating 'point' as 'точка'. It is a unit of measurement, not a dot or location. The equivalent is 'процентный пункт' or specifically 'четверть процентного пункта'. Confusion may arise with 'quarter' as a time period (четверть часа) or district (квартал).

Common Mistakes

Saying 'quarter percent' instead of 'quarter point' or '0.25 percent'. While understandable, 'quarter point' is the standard financial term.
Using 'quarter point' for non-percentage measurements.
Writing 'quarter-point' inconsistently (hyphenated when used as a compound adjective before a noun: 'a quarter-point hike').

Practice

Quiz

Fill in the gap

The Federal Reserve voted to to combat inflation.

Multiple Choice

In financial terminology, what is a 'quarter point' equivalent to?

FAQ

Frequently Asked Questions

: Yes, they are exactly equivalent. One percentage point equals 100 basis points, so a quarter point (0.25%) equals 25 basis points.
: It is extremely rare. Its primary and almost exclusive domain is finance and economics, specifically regarding interest rates, yields, and percentages.
: It is typically hyphenated when used as a compound adjective before a noun ('a quarter-point increase'). It is not hyphenated when used as a noun phrase following a verb ('raised by a quarter point').
: A quarter-point cut or reduction. In terms of magnitude, the opposite could be 'no change' or a larger move like a 'half-point cut'.