Minister says sterling fall no rebuke to policy

LONDON (Reuters) - The pound's sharp fall against the dollar on Friday after British output shrank for the first time in 16 years is not a condemnation of the country's economic policy, a junior finance minister said.

Stephen Timms, chief secretary to the treasury, told the BBC's Newsnight programme that he was optimistic about the prospects for international cooperation to resolve global economic difficulties.

"I don't think it's a vote of no confidence," Timms said when asked about sterling's fall to a six-year low against the dollar.

"We don't have a target for exchange rates. Exchange rates are volatile and go up and down. And of course there are exporting companies in the UK that will benefit from what has happened. And I don't know what will happen in the future."

Timms declined to be drawn on whether the government would urge the Bank of England to take further coordinated action with other central banks to cut interest rates.

"The Bank of England is clearly talking to others around the world. They acted very decisively a couple of weeks ago with other central banks," he said.

"The Bank of England has cut interest rates ... and will look at the question again for the future."

(Reporting by David Milliken; Editing by Leslie Adler)