The Bank of Canada left its main interest rate unchanged, at 2.75%, saying the economy has softened but not deteriorated, and inflation has picked up steam.

The Bank of Canada left its policy interest rate at 2.75 per cent on Wednesday, confirming market expectations. Data showing stubbornly high underlying inflation and robust-looking first-quarter gross domestic product had led markets to price in only about a 20-per-cent probability of this cut.

The Bank of Canada once again hit the pause button on interest rate cuts, despite recent concerns of a recession in the face of U.S. tariffs.