Interest rate hike may not hurt.

Borrowing costs for Canadians are up and are likely to go even higher. The Bank of Canada raised its key lending rate a quarter point Tuesday to a six-year high of 4.5 per cent. The central bank rate hike prompted banks and trust companies to raise their prime lending rates to 6.25 per cent from 6.0 per cent. But that increase, likely to be followed by another quarter-point increase this fall, probably won't have a major impact on most Canadians. The rising loonie is helping to restrain economic growth and bring down inflation. That should help the central bank bring down inflation to its target level. Variable-rate mortgages should be affected by yesterday's announcement, but they account for only 21 per cent of the total mortgage market. Fixed-rate mortgages account for 73 per cent of the total, up from 67 per cent a year earlier, according to the Canadian Association of Accredited Mortgage Professionals (CAAMP).