The Bank of Canada is holding its rates steady, despite continued uncertainty over tariffs and the economy.
The Bank announced on Wednesday morning that it is maintaining its key overnight rate at 2.75 per cent.
The bank rate is also being held at three per cent and the deposit rate at 2.7 per cent.
In a statement, the Bank said a steady hand was needed as the status of tariffs continues to change.
"While the global economy has shown resilience in recent months, this partly reflects a temporary surge in activity to get ahead of tariffs," the statement read. "In the United States, domestic demand remained relatively strong but higher imports pulled down first-quarter GDP. US inflation has ticked down but remains above two per cent, with the price effects of tariffs still to come."
Canada's first-quarter economic growth was stronger than expected, at 2.2 per cent, but the Bank also cited a cooling labour market.
Inflation was also down to 1.7 per cent, thanks in part to the removal of the federal carbon tax. The price of oil has remained steady throughout the spring and is near levels reported during the last rate announcement in mid-April.
The Bank also pledged to monitor conditions related to tariffs.
"With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts," the statement read. "We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs."
The next scheduled rate announcement is set for July 30.