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 on Wednesday held its key benchmark rate at 2.75%, citing the need to probe the effects of U.S. trade policy, but said another cut might be necessary if the economy weakened in the face of tariffs.