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TSX sheds near 1%

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BoC leaves interest rates unchanged

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Ten out of eleven sectors log losees

(Updated at 10:14 a.m. ET/ 1414 GMT)

By Purvi Agarwal

April 10 (Reuters) - Canada's main stock index fell

nearly 1% on Wednesday after the Bank of Canada (BoC) ruled out

rate cuts until there were visible signs of sustained inflation

drop, while a hot inflation report in the U.S. further dampened

the sentiment.

At 10:14 a.m. ET (14:14 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was down 207.18 points, or

0.93%, at 22,154.6.

The index is on track to log its worst day in nearly two

months if declines hold.

BoC held its key rate at a near 23-year high of 5%, while

Governor Tiff Macklem gave no sense of a timeline.

Traders quickly dialed back their expectations for the

timing of the next rate cut. Before the announcement, they saw

an 84% chance of it coming in June but that fell to around 40%

Yield on the benchmark Canadian bond touched its

highest since February at 4.35%.

Across the border, U.S. consumer prices increased more than

expected in March, data showed on Wednesday, casting further

doubt on the timing of rate cuts by the Federal Reserve.

The U.S. central bank will now wait until September before

starting to cut interest rates, traders bet after the hot data.

"Markets are nervous because we came into the year expecting

a lot of rate cuts and now reality's setting in that there are

not going to be (as many", said Greg Taylor, chief investment

officer at Purpose Investments.

The TSX saw a broad sell-off on Wednesday, with 10 out of 11

sectors trading in the red, and energy shares the only

outliers with a 0.9% rise, tracking higher oil prices.