Economic weakness will force rate cuts this year

We expect GDP growth to slow to only 1.0% this year, as the housing downturn weighs on the domestic economy and exports are held back by the global slowdown. That weakness should prompt the Bank of Canada to cut interest rates in the second half of this year, laying the groundwork for a modest rebound in GDP growth to 1.4% in 2020 and 1.8% in 2021.

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