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This a report from the Globe and Mail today.
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"Bank of Canada hikes benchmark interest rate

The Bank of Canada has increased its overnight lending rate to 0.75 per cent from 0.5 per cent – the bank’s first hike in seven years. The move is a vote of confidence in the Canadian economy, the bank said. The bank raised its Canadian growth prediction to 2.7 per cent this year from an earlier estimate of 2.5 per cent. Beginning with the Royal Bank of Canada, the country’s five largest banks also hiked their prime rates along with the central bank.

What it means and what comes next

The Bank of Canada releases its next quarterly forecast in October. Although many economists predict a second rate hike later this year, the bank cautioned that decisions on future rate hikes would take into account “incoming data” on inflation. Canada’s Consumer Price Index remains far below the bank’s 2 per cent target.

According to Bank of Montreal chief economist Douglas Porter, the rate hike initiates a process that could see the Bank of Canada’s key rate bumped up to 1.5 per cent by mid-2018.

Payments for existing fixed-rate mortgages are not immediately impacted by the hike, but higher rates would impact payments upon renewal. The interest cost on variable-rate mortgages is pegged to the lender’s prime rate, minus any negotiated discount. An interest-rate rise increases the amount of time it takes to pay off a mortgage unless payments are increased on renewal."

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