In a vicious cycle

As soon as the Reserve Bank announced it would keep the official cash rate at 0.75% in November, finance experts started assessing the impact of the decision on housing affordability.

Andrew Moore, chief executive at Spaceship, describes the rate hold as an enormous relief for 1.8 million people between the ages of 25 and 34 who are saving for a deposit.

Any rate hold (or increase) helps those reliant on interest from their bank savings.