BOC surprises, holds rates steady...and the Fed may raise, later this year.
BOC surprises and holds rates steady and the Fed may raise later this year...
TORONTO, June 10 (Reuters) - The Toronto Stock Exchange's main index was set to fall on Tuesday after the Bank of Canada surprised markets by leaving interest rates steady and signaled the recent spate of cuts may have come to an end.
The TSX had been priced in for a 25 basis-point cut in the key overnight rate, analysts said, but the index could tumble after the central bank held the rate steady at 3 percent to combat inflation. For details, see: [nN10336555]
Adding to the cloudy outlook, global stock markets fell earlier on Tuesday after U.S. Federal Reserve Chairman Ben Bernanke warned that the U.S. central bank work to hold down long-term inflation expectations. His remarks were taken to mean U.S. interest rates may rise later this year.