The Bank of Canada (BoC) released its interest rate decision on Wednesday. The central bank kept its interest rate unchanged at 0.50%, noting that the current monetary policy was appropriate. This decision was expected by analysts.

The BoC upgraded its growth forecast for to 1.7% from 1.4%. The economy is expected to expand 2.3% in 2017 and 2.0% in 2018.

The BoC noted that the Canadian economic growth in the first quarter was unexpectedly strong due to temporary factors, adding that it will reverse in the second quarter.

The central bank also said that the labour market continued to improve, household spending continued to expand moderately, while business investment was shrinking.

According to the central bank, inflation was evolving as anticipated by the BoC, and was expected to decline further.

Risks around the inflation are roughly balanced, the central bank said.

The BoC added that financial vulnerabilities continued to edge higher.