30 April 09 MPC Rate cut - NB!

[Lord Anubis]

Me Tito...well maybe.. considering that most here think I don't understand daily interest.. eish..its you who don't understand African banking and my points..well its May and time for the new thread..lets kill this one and all move on to the next haha

 

[milomak]

A 1% cut on 9.5% gives:

9.5% * (1 - 1%) = 9.405%

This is not the same as lowering the rate by 100 basis points:

9.5% - (100 * 0.01%) = 8.5%

A basis point is 1/100 of a percentage point.

they could also say they lowered the rate by 1 percentage point