Basis points refer to a unit of measure used in finance and economics, typically in relation to interest rates or bond yields. One basis point is equal to 0.01% (or 0.0001), so when changes are expressed in terms of basis points, they represent the percentage change in the value being measured. For example, a change of 50 basis points in an interest rate would mean a 0.5% increase or decrease from its previous level. Basis points can also be used to compare bond yields or other financial instruments with different denominations by converting them all to a common unit of measurement (i.e., percentage).