Canada’s main stock index fell on Thursday, amplifying its decline from the previous day as oil prices fell and investors continued to gauge the Bank of Canada’s decision to resume its rate-hiking campaign of interest.

The Toronto Stock Exchange’s S&P/TSX Composite Index ended down 40.99 points, or 0.2%, at 19,942.70.

Surprisingly high fiscal spending in the first quarter and persistently high core inflation are among the main reasons the Bank of Canada hiked rates after a four-month hiatus, Lieutenant Governor Paul Beaudry said.

On Wednesday, the central bank raised interest rates to 4.75%, the highest level in 22 years.

“We expect a rate hike in July, which makes sense as the data is pretty strong and we need to fight inflation,” said Greg Taylor, chief investment officer at Purpose Investments.

Money markets see around a 60% chance of another rate hike next month and expect further tightening through September.

The TSX lost ground even as US stocks closed higher.

The technology sector lost 0.7% after falling 3.4% on Wednesday. Rising interest rates are a headwind for the technology sector as they reduce the value of the future cash flows companies in the sector are expected to generate.

The industrials sector lost 0.9%, while the energy sector fell 0.8%, while oil prices fell 1.7% to $71.29 a barrel.

In contrast, the materials group, which includes precious and base metal miners and fertilizer companies, rose 0.6% on the back of gold’s rally.

Another bright spot was TD Bank Group. Its shares rose 1.4% as CEO Bharat Masrani said he was confident the bank would resolve the issues with regulators leading to the collapse of its planned $13.4 billion takeover of regional creditor First Horizon would have led. (Reporting by Fergal Smith in Toronto and Ankika Biswas in Bengaluru; Text by Shweta Agarwal and Jonathan Oatis)