Iron ore price, page-54234

Supply and demand isn't the only issue at play here—the real problem lies in the capital gains discount and negative gearing, which incentivizes many to invest in property. This, in turn, drives up both rental and sale prices in the market.

Discussing property prices is relevant because higher prices lead to higher rents and mortgage payments, leaving people with less disposable income, which impacts the economy as a whole. This is why the RBA won't—or shouldn't—take any action that could fuel the property market, as a reduction in interest rates would likely do just that.