Flaherty Sees More Coordinated Efforts Among Central Banks

Canadian Finance Minister Jim Flaherty said today he expects more coordinated efforts among central banks could take place.

Policy makers have been working together in terms of foreign exchange interventions, Flaherty said at a panel discussion in New York today, and “there was also coordination in what was proposed this morning.”

Earlier today, the Federal Reserve and five other central banks cut the cost of emergency dollar funding for European banks as part of a globally coordinated central-bank response to the continent’s sovereign-debt crisis.

Asked if he expects more of these types of actions, Flaherty said, “Yes, I do.”

Speaking to reporters after the event, Flaherty called today’s moves “a positive step,” adding “it will help create additional liquidity in the financial system, which is good.”

To contact the reporter on this story: Sean B. Pasternak in New York at spasternak@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net

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