31 million people disappointed by the Bank of England

The Bank of England left interest rates on hold today. However, the decision to sit on the fence will be a huge disappointment to 31 million people. Two out of three consumers (65%) believe the current economic situation is either worse than or as bad as the media reports.

David Kuo, Head of Personal Finance at money website Fool.co.uk, says: "The decision by the Bank of England to keep interest rates unchanged will add to the doom and gloom felt by 31 million people.

"Consumers have to deal with rising fuel prices, climbing food bills and household budgets that are getting increasingly stretched. Additionally, mortgage lenders have refused to pass on the central bank's three rate cuts since December.

"The economy is weakening, and this poses a threat to household finances unless we take decisive action. Homeowners need to review their budgets and slash spending with immediate effect. Ideally, they should also try to squirrel away at least three months living expenses to ride out any short-term hits to their finances.

"The Bank of England may be happy to sit on its hands, but homeowners must not do the same. Make yourself a cash-cushion now. It's the most comfortable thing to sit on in a recession, and it beats sitting on your hands any day."