Photo: The Canadian Press. All rights reserved.

Canadian dollars (loonies) are pictured in Vancouver, on Sept. 22, 2011. THE CANADIAN PRESS/Jonathan Hayward

The Canadian dollar was lower Wednesday ahead of the mid-morning announcement from the Bank of Canada on interest rates.

The currency dipped 0.09 of a cent to 97.19 cents US.

Traders expect the bank to leave the key rate unchanged at one per cent and will look for hints as to when the central bank might raise rates.

The central bank could indicate that persistent economic weakness could further delay a hike in rates and that could put even further pressure on the loonie.

The dollar has fallen about three U.S. cents since the Bank of Canada's January announcement, when it lowered expectations of a rate hike.

Since then, economic data has shown falling retail sales at the end of 2012, a contraction of economic growth in December and low inflationary pressures.

"This low-growth/inflation dynamic lifts the odds the Bank will tone down further or remove completely its tightening bias," said BMO Capital Markets senior economist Michael Gregory.