UPDATE 1-Toronto stocks slide after surprise rate decision

Tue Jun 10, 2008 10:42am EDT
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*Bank of Canada leaves interest rate steady

*Inflation concern may mean rate-cut cycle over

*Materials producers lead TSX fall

*Fed's inflation warning hits global markets

By Jonathan Spicer

TORONTO, June 10 (Reuters) - The Toronto Stock Exchange's main index was undercut on Tuesday after the Bank of Canada left interest rates steady, surprising a market that was expecting to benefit from at least one more cut.

The central bank said inflationary pressure caused it to leave its key overnight rate at 3 percent. The move helped slice 0.75 percent off the Canadian benchmark stock index, which had risen to record highs throughout the latest cycle of monetary relief. For details, see: [nN10336555]

Potash Corp of Saskatchewan (POT.TO: Quote) was the biggest decliner, off 1.7 percent, while the wider materials sector skidded 1.6 percent.   Continued...