The world’s 11^th-largest economy will be hobbled this year by weak exports and record debts that are curbing consumer spending even as the risks of a major international shock have eased, the Bank of Canada said. It remains the loan central among group of seven nation suggesting a rate increase as its peers have added stimulus in recent months.

It’s more dovish than they’ve been in previous statements, ‘said John curren,a senior vice president at US force ltd.,an online foreign-exchange dealer by phone from Toronto.”They ‘ve  always said we’re going to raise sooner rather than later and now they’re backing away from that slightly, so you’re seeing the Canadian dollar weaken on that.

The currency dropped to a two-month low as the central bank led by Governor Mark Carney pared its forecast for economic growth this year to 2 percent from an October prediction of 2.3 percent.

The nation’s economy will reach full output in the second half of 2014 instead of the end of 2013 the bank said, as growth accelerates to 2.7 percent next year.

Economists predict senior deputy Governor            Tiff Macklem will become the next governor, a subject he didn’t address at today’s press conference Macklem said declines in housing starts and resale’s are signs household imbalances are easing.