Pattie Lovett-Reid: What higher interest rates mean for you
BNN Bloomberg
We fear and yet know we need it - higher interest rates.
The Bank of Canada did exactly what we expected it to do - move rates higher by 25 basis points to 0.50 per cent.
Wednesday’s move is the first step in the most significant tightening cycle in decades all in an effort to slow down red-hot inflation.
At the same time it will be a balancing act for the Bank of Canada to ensure inflation is reined in and the economy isn't cooled too aggressively.
The next rate announcement is April 13, so the prudent financial household will be ready should rates need to rise further.
So what does this mean for you?
For those who have locked into fixed mortgages there is no need to panic as your rates won't change so you can breathe a little easier. However, rising rates will make housing more expensive for those in variable rate mortgages or loans.
