The Globe and Mail reports in its Thursday edition that RBC has set aside more money to absorb loans that could default, as borrowers increasingly fall behind on real-estate and credit-card payments as a result of higher interest rates and inflation. The Globe's Stefanie Marotta writes that while the country's largest lender posted a first-quarter profit on Wednesday that beat analysts' expectations, it also signalled that borrowers are likely to struggle to manage their debt until rates fall later this year. With Canada's economic growth lagging the United States, however, there could be relief coming for consumers. RBC chief executive officer Dave McKay said that the Bank of Canada is likely to start cutting interest rates earlier than the U.S. Federal Reserve this year. "Growing consumer demand and rising unemployment points to a softening in the Canadian economic backdrop," Mr. McKay said during a conference call with analysts. "In contrast, the U.S. is showing continued strength in labour markets, above average wage growth, a resilient U.S. consumer and higher corporate profits." RBC set aside $813-million in loan-loss provisions, higher than analysts expected, with risk particularly high in commercial properties.