The Bank of Canada has opted to keep its key interest rate unchanged for a sixth consecutive meeting, with policymakers citing signs of an economic rebound and easing inflation driven by oil prices.

Led by Governor Tiff Macklem, the decision-makers on Wednesday held the policy rate at 2.25%, a move that aligns with forecasts from economists surveyed by Bloomberg and expectations in the overnight index swaps market.

In its monetary policy report, the central bank stated, "Following a year of softness, the Canadian economy is showing signs of improvement." The bank further noted, "Growth is projected to pick up, and inflation is expected to gradually recede from recent highs. Uncertainty, however, remains elevated."