In its statement from Ottawa, the bank predicted the economy will grow by 2.2 percent in 2012, 2.3 percent in 2013 and 2.4 percent in 2014.
Its global view remained cautious for Europe and China, but somewhat optimistic for the United States.
"The economic expansion in the United States is progressing at a gradual pace," Bank of Canada Gov. Mark Carney wrote. "
"Europe is in recession and recent indicators point to a continued contraction.
"In China and other major emerging economies, growth has slowed somewhat more than expected, though there are signs of stabilization around current growth rates," the statement said.
The bank said exports are still being plagued by the persistent strength of the Canadian dollar and were expected to remain subdued until the first half of 2014.