With the inflation rate continuing to rise in this country, the Chief Executive Officer for Steinbach Credit Union says this will likely push the Bank of Canada to further raise interest rates.

Earlier this week, we reported that the annual inflation rate climbed to 5.7 per cent in February. According to Statistics Canada, this is the highest level since August of 1991 and the second consecutive month over five per cent.

iesen says that quickly changed.

"If you had bought a house and the interest rates were 10 per cent and then it went up to 18 per cent, suddenly that 40 per cent would go to maybe almost double that," explains Friesen. "So a lot of people did lose their homes back in 1980."

According to Friesen, the Bank of Canada does not like to see inflation rates over three per cent. Considering the inflation rate was at 5.7 per cent in February, Friesen says we can expect interest rates will go up.

"Hopefully not to 18 per cent, that would be really too high," notes Friesen.

But, Friesen says interest rates could easily go up by 1.5 per cent.

"That would bring us to pre-COVID rates and I think those rates are probably pretty solid rates," he adds.

With files from The Canadian Press