Australia says G20 sees need for coordinated action

SAO PAULO (Reuters) - Officials from the world's biggest economies agreed on Saturday on the need for coordinated action to fight the global financial crisis, Australia's top economy official said.

"I think there is a consensus on the need for coordinated and decisive action globally, going to first of all fiscal policy," Australian Treasurer Wayne Swan told Reuters on the sidelines of a meeting of the Group of 20 countries that covers the world's biggest economies.

"It's very important that those countries which have the capacity to stimulate their economy do so."

Swan said in an interview there was also agreement on the need for a further loosening of monetary policy in different parts of the world.

Central banks from China to the United States have already been cutting interest rates in a bid to offset the impact of the credit crisis on their economies.

The G20 meeting was attended by central bankers, including Ben Bernanke of the U.S. Federal Reserve and Jean-Claude Trichet of the European Central Bank.

Officials agreed that any action needed to stabilise financial systems around the world should be taken and that there was a need for a "fundamental reform to the international financial architecture," Swan said.

He also expressed concern about World Bank forecasts for a slowing of economic growth in emerging economies.

"Growth has been slowing dramatically in the developed world, but we've heard reports today from the World Bank that this is now spreading to the developing world, that emerging economies are now much more dramatically impacted by the global financial crisis," Swan said, adding that could hit Australia, a major trading partner with countries such as China.