Toronto stocks declined Tuesday, as investors absorbed indications from the Bank of Canada, which raised rates a quarter-point today, that further rate hikes might be needed.

The S&P/TSX composite index lost 12.44 points, or 0.10%, to 12,329.79.

Six of the 10 TSX main sub-groups were up, but the energy sector fell 0.59%.

Crude for June delivery closed down 45¢ at US$72.88 a barrel, above an intra-day low of $71.75.

Nexen Inc. fell $1.68, or 2.50%, to $65.64.

The gold sector, a sub-set of materials, was up 0.97%. Gold for June delivery closed up $10.30 to US$634 an ounce.

Kinross Gold gained 25¢, or 1.89%, to $13.48.

The central bank raised its key overnight rate to 4%. The loonie was up 0.33 of a cent to US88.36¢.

The S&P/TSX Venture composite index fell 0.86, or 0.03%, to 3,094.99.

In New York, markets fell as investors showed inflation concerns.

The Dow Jones industrial average fell 53.07 points to 11,283.25, the Nasdaq composite index dropped 3.08 points to 2,330.30, while the S&P 500 finished down 6.37 points at 1,301.74.