The Globe and Mail reports in its Wednesday edition that Canada's main stock index fell on Tuesday by the most since mid-August as the prospect of higher borrowing costs to tackle inflation made it less appealing to make big bets. A Reuters dispatch to The Globe says that the S&P/TSX Composite Index ended down 273.94 points at 20,218.89. "We're not making big moves right now because we see a lot of crosscurrents," said Joseph Abramson, co-chief investment officer at Northland Wealth Management. "The seasonality is tough, rising interest rates are leading to valuation compression but it's too early to start talking about reaccelerating growth." Canada's annual inflation rate in August jumped to 4 per cent from 3.3 per cent in July, a sign the Bank of Canada may be forced to raise interest rates yet again after 10 increases since March of last year. Money markets were not positioned for such a hot inflation number. Canadian bond yields shot up, with the five-year bond yield up 17 basis points to a fresh 16-year high of 4.22 per cent. Implied probabilities in swaps markets suggest about a 40-per-cent chance that the BoC will hike rates again at its next policy meeting on Oct. 25, up from 21 per cent before Tuesday.