The head of Access Credit Union doesn't think this week's hike in the prime rate will have too much impact on the economic growth and activity the region has enjoyed over the past few years.

The Bank of Canada raised its key lending rate this week by a quarter point to 1.25 percent with most lending institutions following suit and raising their prime rates.

"We've been following the shifts by the bank, but it seems this one came a little bit sooner than anticipated, but I think it's indicative of how strong the economy is across the country," said Larry Davey, President, and CEO of Access Credit Union.

The central bank is anticipating Canada's economy to expand by 2.2 percent this year and 1.6 percent in 2019.

"The expectation from the experts is that we are going to see another one or two more jumps in rates," said Davey.  "It's a situation where people who have had variable rates have enjoyed very low rates over the eight years, but if there is a swing in rates it probably in their interest to look at locking in for the next couple of years."

Larry Davey, President, and CEO of Access says he doesn't think the increase will keep people from taking out loans and mortgages at this point.

Prime rate at most financial institutions is sitting at about 3.45 percent. Historically that's still a pretty good rate, according to Davey.

"It's far below the norm if you look at the last 30 years. It's still beneficial for people who are borrowing to buy houses or vehicles, but at the same time if the upward trend continues, people will need to keep a watch on that."

While the move means borrowers can expect to pay more, people who like to save their money can expect to earn more on savings accounts and guaranteed investment certificates.

"I think what has happened for a lot of people is they've become used to a certain deposit rate over the years. Now, if they can lock in at a little higher rate, they are going to guarantee themselves a set income or a set return for the next number of years," Davey said.