What to expect after an interest rate hike | Facebook Live

On Wednesday afternoon Bank of Canada governor Stephen Polozwill revealwhat the bank will do about interest rates.

Most economists expectPolozto announce a rate increase, something the central bank has not done for seven years.

CBC's Peter Armstrong and personal finance expert Preet Banerjee answer questions from viewers about the effect of rising rates in a Facebook Live video.

But Banerjee tells Armstrong he will "not be surprised" if interest rates hold on Wednesday, despite expectations. A key factor may be the recent softness in oil prices, Banerjee says.

Although economists anticipate a small rise in rates, Armstrong says it may result ina "big change in our mindset" after seven years.

During the Facebook Live there are questions about the possible effects on GIC rates, credit card rates, mortgages, HELOCs (home equity line of credit)and the loonie's exchange rate, with all of them expected to rise, too.

Armstrong and Banerjee discuss what you should do to get your financial house in order in the face of rising rates.

And Banerjee offers his take on the best investment options when that happens.

He also cautions there could be repercussions for the housing marketin the fall, when rising rates could meet stress testing for uninsured mortgages. He says there's a chance that could lead to the correction everybody's been talking about for the past decade.