The Bank of Canada (BoC) left its benchmark interest rates unchanged at 1.75 percent on Wednesday, as widely expected.

In its policy statement, the Canadian central bank said that in determining the future path for its policy interest rate, Governing Council would be watching closely to see if the recent slowdown in growth is more persistent than forecast.

The BoC also noted that Canada's economy has been resilient but indicators since the October Monetary Policy Report (MPR) have been mixed, and data "indicate that growth in the near term will be weaker, and the output gap wider", than projected in October.

It now estimates Canada's GDP will grow by 1.6 percent in 2020 and 2 percent in 2021, following a 1.6 percent growth in 2019. The Canadian business investment and exports are seen to contribute modestly to growth, supported by stronger global activity and demand.

Meanwhile, inflation is forecast to stay around the 2 percent target over the projection horizon, with some fluctuations in 2020 from volatility in energy prices.