The Globe and Mail reports in its Monday, July 11, edition that the Bank of Canada has expressed strong confidence in the Canadian economy this year. The Globe's David Parkinson writes that this Wednesday, the BOC delivers its latest interest rate decision and quarterly update of its economic forecasts. A rate change is not expected. Observers, however, will be paying attention to changes in the bank's view of how the economy is unfolding, as well as how it views the considerable risks that are now looming around its outlook. Early in the year, the BOC resisted growing calls for another interest rate cut to go along with its two cuts in 2015, instead expressing more optimism in an economic recovery than many observers considered warranted. It was betting on the federal government's increased spending plans to help offset the weakness in private sector spending. The Globe says the BOC would be more than justified on Wednesday to either ease off its economic growth forecasts and its projection for the closing of the output gap, or to at very least stress the decidedly downside risks to its forecasts. It could say a rate cut is not out of the question later this year if conditions take a turn for the worse.