![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2019\/08\/bank-of-canada-1.jpg\")
<\/a><\/p>\nPhoto: James Bombales<\/em><\/p>\n The Canadian housing market appears to have found its footing<\/a>, and that\u2019s one reason the Bank of Canada doesn\u2019t need to follow in the footsteps of other central banks as they trim interest rates.<\/p>\n While others, including the US Fed, are targeting lower interest rates amid weakening economic prospects, Canadian policymakers are better positioned to stand on the sidelines, suggests Matthieu Arseneau, deputy chief economist at National Bank.<\/p>\n\n \u201cPrivate sector job creation in 2019 is the strongest since 2011, core inflation is right on the central bank\u2019s target, and risks to the housing sector have faded with sales bouncing back strongly in recent months on the back of declining mortgage rates,\u201d writes Arseneau, in a Hot Charts note<\/a>.<\/p>\n In July, Canadian home sales increased 3.5 percent on a month-over-month basis and 12.6 percent annually, according to the Canadian Real Estate Association, another economist to declare Canada\u2019s housing-market correction \u201cis officially over<\/a>.\u201d<\/p>\n Meantime, Canada\u2019s national housing agency recently concluded that Vancouver, one of the country\u2019s key real estate markets, was no longer in the high-risk camp<\/a>.<\/p>\n In addition to job growth, inflation levels and a more stable national housing market, Arseneau cites projected second-quarter Canadian GDP growth of 3 percent \u2014 possibly the strongest performance of any G7 country \u2014 as a factor supporting a hands-off approach from the Bank of Canada.<\/p>\n However, there is one possible development that could dash such plans and result in the Bank of Canada cutting its policy rate, which influences the mortgage market, for the first time since October 2018.<\/p>\n \u201cUnless the trade conflict between the Unites States and China escalates further, there is no need for monetary stimulus in Canada,\u201d Arseneau explains.<\/p>\n Not everyone agrees the Bank of Canada will stay the course, especially considering it is known to sooner or later follow the US Fed, which trimmed its interest rate target last month<\/a>.<\/p>\n