The Bank of Canada is widely expected to cut the interest rate by 25 basis points in its upcoming meeting next Wednesday after data last Friday showed that the country's economy grew at a slower pace than expected in the first quarter.

The GDP report indicated that the Canadian economy has not rebounded from last year's weak correction as strongly as the data initially suggested, which may convince the central bank to begin lowering borrowing costs.

RBC said in a note on Friday: "It seems that all ducks are in a row for the Bank of Canada to start a policy easing cycle and lower the overnight rate by 25 basis points to 4.75% on Wednesday."

At the central bank's last meeting in April, Governor Tiff Macklem indicated that the case for rate cuts appears to be in place, but officials need to see more evidence of a slowdown in inflation.