All good comments above and I don't completely disagree with any of them.  I simply feel that the long term risks to emergency low interest rates are greater than the short term pain of a 0.5% rise.  I don't think Poloz is very boxed in.  He dropped rates in response to an emergency, the rapid drop in oil prices.  That emergency is now over and he should already have gotten rates back to 1%.  In my opinion, the BoC rate should presently be sitting at 1.25%, back to (common) premium of 0.5% over the US Fed rate.  The free lunch is over and I think it's time to accept it.  I paid a mortgage through the 13% rates in the 90s, so I certainly understand the pain of rising rates, but I can't believe we're quivering in fear over the prospect of moving off 0.5%.