Australian equities remain under pressure from a deteriorating macroeconomic backdrop, elevated inflation and a centeral bank that knows it must get inflation back to the low end of its target 2-3% range. We have argued againsyt a catch up trade for the equity market and we reiterate out stance - Australian underperfroamcen is likely to widen not contract in coming months. It remains premature to position for the nexdt upsinwg and an easing in policy rates. Patience is required.
