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As Bank Of Canada Turns Hawkish, Investors Retool For Higher Rates Outlook

TORONTO (Reuters) – Investors in Canada are shunning interest-rate sensitive stocks, seeking inflation protection and betting on a steeper yield curve as the Bank of Canada leads global central banks in shifting to a more hawkish stance.

Canada’s central bank on Wednesday signaled it could hike interest rates as soon as next year and cut the pace of bond purchases, becoming one of the first major central banks to reduce stimulus.

Investors say they have been adjusting portfolios for some time to prepare for a higher rates outlook, but the BoC’s move has reinforced the focus on such an outcome. Read more…..

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