November 30th, 2011
04:47 PM GMT
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London (CNN) – The U.S. Federal Reserve, European Central Bank and other central banks Wednesday took co-ordinated action to oil the wheels of the world's financial system.

The move came as Olli Rehn, Europe's Commissioner for Economic and Monetary Affairs, warned the eurozone was entering a critical phrase to solve its debt crisis, which has deepened since Greece took its first bailout in May 2010. Rehn said the region has "10 days to complete and conclude the crisis response of the European Union."

Richard Quest, CNN's international business correspondent, says the banks' move will make it easier for financial institutions to get on with the daily business of lending between each other. However, it does not address the fundamental problems of the eurozone.

CNN chief business correspondent Ali Velshi says it was done amid signs of a possible global credit freeze, the likes of which have not been seen since the collapse of Lehman Brothers in 2008.

The central banks' move boosted confidence, with markets rallying significantly. But its lasting impact on Europe and the world's financial system is not yet clear. Quest will be counting down Rehn's 10 days on Quest Means Business. Join him Monday to Friday, 1900 London time. You can also find him on Twitter.

Filed under: BusinessQuest Means Business

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