RBC predicts loonie will stay below parity for 2 years

Canada’s largest bank is forecasting the economy will do slightly better than most expect in the next two years, and one reason why is that the Canadian dollar won’t.

The Royal Bank is projecting growth rates of 1.8 per cent for 2013 and 2.9 per cent for 2014, which is a couple of decimal points better than the consensus estimate federal Finance Minister Jim Flaherty will be using in Thursday’s budget.

Read more: http://tinyurl.com/clmjp5v

Loonie lower, central bank leaves rates unchanged, suggests hikes a long way off

TORONTO – The Canadian dollar was lower after the Bank of Canada said it’s leaving the key overnight interest rate unchanged at one per cent and again suggested it will stay that low for some time.

The currency slipped 0.4 of a cent to a fresh, eight-month low of 96.88 cents US as the bank said that “the considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required.”

Read more: http://tinyurl.com/bdcoezb