Economists at HSBC Global Research have joined the chorus of rate watchers now expecting a rate cut from the Bank of Canada next week.

HSBC expects Canada’s central bank to cut interest rates by another 25 basis points (bps) to 0.5% at its next meeting on July 15, according to a research note published Wednesday.

A rate cut would be justified for several reasons, the note says.

For one, “the negative impact of the oil price decline has been larger and more long-lasting than we believe the Bank of Canada had been anticipating,” it says.As well, “the BoC’s optimism about U.S. demand and a weaker [loonie] lifting non-energy exports has failed to materialize and won’t likely unfold until well into Q3,” it adds.

In addition, it is “becoming increasingly evident that the economy contracted again in Q2,” the research note says. “The economy was thus in a much weaker position in [the first half] and the risks are that the economy will not return to capacity by end-2016 without further stimulus.”

Lastly, commodity prices are also facing renewed headwinds amid heightened global economic uncertainty, it says.

HSBC is also cutting its 2015 GDP forecast from 1.8% to 1.1%, largely due to weakness in the first half of the year, noting that a further cut to rates could even materialize in this weak economic environment.

HSBC has long expected the BoC to cut rates all the way to 0.25% this year, the research note says. The only question was whether the next cut would come next week, or later in the year. “Recent developments have tipped the scales toward greater urgency,” it says, adding that it also expects the BoC to “leave the door open to another easing later this year,” it concludes.