The Monetary Policy Committee also announced rates would be kept stable at 0.5 per cent.
Aloysius Fekete is the founder of MaxBips, an online auction house for term deposits.
He says: “I’m not at all surprised that the base rate was held at its current level. Overall, we’ve seen business rates continue to fall; over the last three months, they’ve fallen by almost as much as half a percent. There are some banks holding their rates higher but on average, rates have been falling for business deposits.
“I think, ultimately, the expansion of the quantitative easing programme is a prudent move. Basically there is still a lot of concern and risk in the current economic situation and a lot will be revealed in the next three months as far as how solid the signs of recovery that we’re seeing so far are.”
Fekete started MaxBips this year and says progress has been encouraging despite the recession. “As a startup, the recession makes things that much more challenging. It’s making us work a lot harder to win new business,” he admits.
“We’ve gained quite a few clients and have been using the system consistently, running auctions and making deposits. We’ve had more than £110m in auctions on the site since we launched and we’re providing value to our customers in being able to find better rates for them.”
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