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 is expected to hold interest rates at 2.75% on Wednesday, with rising core measures of inflation and better-than-expected gross domestic product growth in the first quarter seen pushing policymakers towards a pause.

The Bank of Canada held its target for the overnight lending rate at 2.75%, marking the second consecutive decision to hold rates steady, following