The Bank of Canada raised its key lending rate by a quarter percentage point to 1.25 per cent Wednesday, the third time it has moved its benchmark rate from once-record lows last summer.

Pay More and Earn More: Understanding the Balance

The bank’s rate has an impact on rates that Canadians get from retail banks for things like mortgages, savings accounts and GICs. The move means borrowers can expect to pay more, but savers can expect to earn more, too says the CBC.

The Financial Post predicts the hikes could heap stress onto buyers already combating stricter regulations that were introduced by the Office of the Superintendent of Financial Institutions on Jan. 1 for uninsured mortgages, and elevated five-year, fixed mortgage rates that were pushed up by the CIBC, RBC and TD banks last week.

The hardest hit by these changes are undoubtedly the Millennials who have been said to be in crisis in the lower mainland even before 2018 was rung in. The high cost of living and expensive real estate make it hard for those looking to get ahead in the city.

Creative thinking and smart saving/investing may be a beacon of hope for this struggling generation. It will be interesting to see how the tides turn in the years to come.