It will likely be a hard sell for Canadians pinched by another increase in debt payments, but the Bank of Canada says yesterday's interest rate hike was a cheerful sign for the economy.

Inevitably, the quarter point increase had an immediate and significant impact on Canadians with variable rate loans and lines of credit.

Bank of Canada governor Stephen Poloz and his senior deputy, Carolyn Wilkins, didn't deny that impact in their news conference yesterday. It forms the basis of one of their biggest worries.

This was excerpted from the 18 January 2018 edition of CBC News.