The Bank of Canada is keeping its key interest rate target on hold as it notes the Canadian economy was a little stronger than expected in the first quarter.
The central bank held its target for the overnight rate, a key financial benchmark, steady at 1.25 per cent.
It says Canada's exports of goods have been more robust than forecast and data on imports of machinery and equipment have suggested a continued recovery in investment.
It noted that housing resale activity has remained soft as the market adjusts to new mortgage rules and higher interest rates, but that solid labour income growth supports the expectation that activity will pick up.
The central bank says global economic activity remains broadly on track, but adds that ongoing uncertainty about trade policies is dampening global business investment and stresses are developing in some emerging market economies.
The central bank noted that recent developments have reinforced its view that higher interest rates will be warranted to keep inflation near its target, but that it will take a gradual approach and be guided by the economic data.