The last decade or so has changed everyone's frame of reference.  When you think of low interest rates, you think of 0%, but in proper context, even 1% is a really low interest rate. Considering how our well our economy has done over the last year, and how we are expected to lead the G7 in growth over the next few years, is a 1% rate justified?  Shouldn't we be much closer to the neutral rate?  The decision the BoC has to make is whether to keep low rates longer, and let the debt bubble continue to build until it pops, or engage in steady hikes and let the air out in a controlled descent. I think we'll see faster rate hikes than most expect.