Access Credit Union has followed the lead of the Bank of Canada (BoC) and raised its interest rates.
On Wednesday, the central bank raised its key interest rate for the second time in two months by half a point to 1.5 per cent.
"We follow the Bank of Canada rate," explained Larry Davey, President and CEO for Access Credit Union.
As a result, loan, fixed deposit and the prime rates at Access have each jumped up a half a point.
"It's still very, very low for borrowing as compared to historical numbers," added Davey.
"I think it's really important that everybody remember that this latest bump in the rates only took the rates back to the level they were at prior to the pandemic," he added. "The Bank had stepped up and really lowered the rates for the pandemic to continue to have the economy chug along, so now they're just moving it back. There is an anticipation that as the supply chain improves and as the unemployment rates continues to get better, and it is very low right now, that there will be a temperament to the inflation rate. And once the inflation rate starts to trend lower, the Bank will likely stop raising interest rates."
That being said, Davey said the expectation is that the Bank of Canada will further raise interest rates another two or three times in 2022.
"How many is difficult to determine...they might do it a quarter point at a time rather than a half point," he added.