The Financial Post reports in its Wednesday, March 27, edition that National Bank of Canada chief executive officer Laurent Ferreira says Canada's lagging economy means the Bank of Canada may have to cut interest rates before its American counterpart, a divergence that could bring further consequences. The Post's Denise Paglinawan writes that Mr. Ferreira says with the U.S. economy growing at close to 2 per cent and Canadian growth stagnating, the countries' respective central banks could end up on different timelines for lowering interest rates. He says, "In terms of rate cuts, the Bank of Canada might need to act before the U.S. Federal Reserve, which will bring a set of other issues like currency divergence, monetary policy and everything that comes with it." Mr. Ferreira adds: "I do believe that housing and immigration is a major conundrum for the Bank of Canada. It is not modelled. Inflation today is mortgage renewal and rents. So those things are still uncertain." Last week, the Fed signalled three interest rate cuts for the year. The BOC is widely expected to start cutting rates in June. With rate cuts on the horizon, Mr. Ferreira sees a lift in commercial lending and more financing activity.