The Globe and Mail reports in its Saturday edition that the Bank of Canada had a "dovish" tone last week and it appears Governor Stephen Poloz would be happy with a softer loonie. The Globe's David Rosenberg writes that the bank trimmed its growth forecast for 2016 to 1.1 per cent from 1.3 per cent and to 2 per cent from 2.2 per cent for 2017, due to slower "near-term housing resale activity and a lower trajectory for exports." There is lots of talk about exports and when a central banker discusses "competitiveness challenges," that is code for "currency depreciation required." The bank's new growth projection implies the economy will return to full capacity in "mid-2018." The loonie is "undervalued" by about 10 per cent, but it will have to become even cheaper to spark the upturn in industrial activity that will be needed to offset the looming drag in the residential real estate. While currency depreciation is no antidote for the myriad of Canada's competitive hurdles, it will still give the positive jolt to exporters that we desperately need to maintain even the lacklustre growth we have on our hands, as the hot housing market most assuredly cools off in the months ahead.