(Bloomberg) -- Australian stocks dropped, on track to close in a technical correction after the Federal Reserve flagged it will start raising interest rates in March.

The benchmark S&P/ASX 200 Index slumped as much as 1.8% on Thursday, taking its decline since its Aug. 13 record to about 10%. Australian and New Zealand bond yields surged after Fed Chair Jerome Powell signaled a rate liftoff in March and didn’t rule out hikes at every meeting.

©2022 Bloomberg L.P.