Citing strong economic data, the Bank of Canada has hiked its interest rate to 1.25%.
Vice President of the WFCU Credit Union Steve Deneau says there is no need to panic.
He says we are still in historically low levels and a quarter point hike, should not be a tremendous burden on anyone.
"If you have any variable rate lending or mortgage which does occupy pieces of the market, your rate will rise because it is tied to prime and when the Bank of Canada raises its rates, most financial institutions will raise their prime rate in conjunction with that," says Deneau.
The central bank says the recent run of strong economic data is a key driver behind its decision to hike the rate, but looking ahead, the rising uncertainty about the future of the North American Free Trade Agreement is continuing to cloud the outlook and create a drag on the economy.
This is the third time the Bank of Canada has raised the rate since last summer.