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OTTAWA — Even though Bank of Canada officials admit the plunge in oil prices has been a shock to the Canadian economy, they believe it “still has room to grow,” with a strong U.S. recovery and increased business investment eventually lifting job creation and overall output.

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Bank of Canada Governor Stephen Poloz rejected speculation that he’s trying to boost growth by weakening the Canadian dollar, saying the currency’s decline reflects a deterioration in the economy’s outlook.

“I honestly reject the notion that I’m talking down the dollar,” Mr. Poloz told reporters in Istanbul, where he’s attending a meeting of finance chiefs from the Group of 20. “It’s not about what we did. It’s about how the economy has behaved.”

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But central bankers reject suggestions that they are also “talking down” the Canadian dollar to help that process along, saying the decline in the loonie reflects the country’s disappointing economic performance.