MDS / BP
Basis point - a unit of rate change
What it measures
One basis point equals 0.01 percentage points. A 25 bp rate change means a change of 0.25 percentage points.
Why traders follow it
Illustrative example: a move from 4% to 4.25% is a rise of 25 bp, not 25%. Do not confuse rate changes with a trade's percentage return.
Check the country, period and source. A single value or regime label does not determine a trade's direction.