The Bank of Canada released its annual financial stability report today, and the Governor of the Bank, Tiff Macklem, made some comments on the financial conditions in Canada. Macklem's most notable statements are as follows:

The financial system in Canada remains resilient.
There may be fluctuations in global markets as expectations shift regarding the scope and timing of interest rate cuts.
Financial institutions still have a long way to go in adjusting to higher interest rates and potential shocks, which poses risks to financial stability.
Some indicators of financial stress have risen, and it appears that valuations of some financial assets have become overstated.
High interest rates will continue to constrain household spending.
The Bank of Canada takes this into account when considering what the interest rates should be for monetary policy to bring inflation back to target.