Rates had to rise

Say goodbye to cheap money, Canada. What were arguably the nine best years for borrowers in this country’s history lurched to a halt Wednesday when the Bank of Canada raised its key interest rate to 1.25 per cent from one per cent.

It’s a move every consumer, business or government that owes or wants to borrow money will regret because sooner or later their debts will cost more — and we are, after all, a nation of debtors. But don’t be mad. The rate hike had to happen. Along with any regret should be the consolation the Bank of Canada did the right thing and in a characteristically modest, Canadian way.

Comforting, too, should be the knowledge that rising interest rates reflect an economy doing very well without the Bank of Canada juicing it any longer.

While you might feel the pain of higher interest rates, you will likely gain from our economic rebound.

Many people fear financial hardship if interest rates rise much higher.

The bank must be careful as it moves the rate needle so that it doesn’t damage consumer confidence and add to the hardship of households already maxed out.

The interest-rate operation has succeeded so far, but we don’t want the patient — Canada’s economy — to slip into another coma.

Waterloo (Ont.) Region Record