Interest rates are up. Should you be worried?

On Wednesday, for the first time in three years, the Bank of Canada raised its key interest rate. It’s a modest hike — just 0.25% — but it’s been a controversial one, with several economists arguing that governor Tiff Macklem was jumping the gun, when Canada has by some measures been dealing with a sluggish economy.

But Macklem also had his reasons. Today we take a look at the Bank’s rationale, what the impact of this rate hike may be, and what it says about the state of Canada’s economy.

Our guest is Kevin Carmichael, Economics Columnist and Editor-at-Large at The Logic.

For transcripts of Front Burner, please visit: https://www.cbc.ca/radio/frontburner/transcripts