Canadian Finance Minister Jim Flaherty said today’s coordinated central bank action wasn’t aimed at supporting any specific financial institution.
“I know that discussions were taking place, not with respect to any specific financial institution,” Flaherty said in a Bloomberg Television interview in New York to be aired later today.
Stocks surged and the euro strengthened after 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.
“I think that the coordination is very important,” Flaherty said. “This is one of the discussions we’ve had repeatedly at the G-20 the last couple of years, the need to coordinate actions like that.”
Earlier today, Flaherty said he expects more coordinated actions could take place.
Flaherty also said European policy makers need to decide on the mandate the European Central Bank will have in helping countries overcome their sovereign debt problems.
“The ECB needs more work,” Flaherty said. “The euro-zone countries need to decide whether they’re going to have the resources” needed to resolve the crisis.
The full interview will air on Bloomberg Television’s Street Smart at 3:00 p.m. New York time.