The current inflation rate for necessities is two to three times higher than what the bank likes to see. Canada's benchmark interest rate hasn't hit that level since the 2008 financial crisis. It's hard to overstate the impact that interest rates more than twice as high as they were before the pandemic would have on the broader economy. WATCH | Here's what a central bank rate hike could do to the housing market:How the Bank of Canada rate hike could impact house prices Duration 5:58 Personal finance expert and Credit Canada CEO Bruce Sellery answers questions about the latest Bank of Canada interest rate hike and what it could mean for house prices. Anyone wishing to get a mortgage to buy a home must have their finances stress tested in order to discern if they can handle higher rates.

Source: CBC News May 30, 2022 23:55 UTC