As Canada cuts rates, RBA doves come home to roost

Another rate hike is possible for Australia while other nations' central banks are poised to cut. (Dan Himbrechts/AAP PHOTOS)

Two economies with much in common, Australia and Canada have nonetheless strode very different paths in the fight against inflation.

The Bank of Canada on Wednesday cut the official cash rate to 4.5 per cent, after becoming the first Group of Seven economy to begin monetary easing in June.