Market agents are paying attention to the next European Central Bank governing council meeting. Not many expect changes in the Bank's monetary policy stance (which currently favors accommodative measures), however, it may launch a comprehensive review of its monetary policy strategy.
"The ECB review is expected to be wide-ranging - from the definition of price stability to the tools used to achieve the price stability objective,” said the analysts at ASB bank.
The last time the European Central Bank reviewed its strategy was in 2003, only 4 years after the Euro was created.
"Most central banks carry out strategic reviews regularly; the ECB is unusual in having waited since 2003," said the Financial Times Journalist Martin Arnold.
According to the journalist, three key areas are expected to be the most debated ones. The first one is the effectiveness of the Bank's policy, as it's known the bank has repeatedly failed to bring up the Eurozone inflation levels to its target (which is currently set at 2 percent), hence a discussion about the causes behind the persistently low inflation is needed and discussing as well as the (whether positive or negative) effects of the bank's accommodative stance.
"Some policymakers are likely to call on the ECB to study the negative side-effects and reconsider their use," explained the journalist.
The other probable upcoming discussion would be about the bank's mandate. Currently, the ECB sets its inflation target “below but close to 2 percent.” Nevertheless, given the failure to keep the inflation close to that level, many consider that they should either increase their target level or change it into a band, among other proposals.
"All of these proposals are likely to face some opposition," continued the journalist.
The third discussion would be about the bank's role itself. Traditionally, the main role of central banks is keeping price levels stable, however, Christine Lagarde suggested that discussing its participation in the fight against climate change, while others consider that it should have a prominent role in the fight against inequality.
This is opposed by many policymakers in the Eurozone, as it could interfere with the Bank's main mandate and affect its independence.
“If the ECB is seen as veering into areas that are not its primary responsibility it could have an impact on its independence,” said OMFIF's chief economist Danae Kyriakopoulou.
The bank's meeting is expected to take place by 13:30 GMT on Thursday.
French Industrial Production Increased in October
French Industrial production grew in October, against analysts' expectations, mainly aided by automobile production and pharmaceutical production.
The data, published by France's National Institute of Statistics and Economic Studies collects, shows that French output went up by 0.4 percent in October, after increasing by the same amount in September and against the market's expectations of a 0.2 percent growth.
Conversely, manufacture production climbed 0.5 percent in October, this time below September's 0.8 percent increase.
Today we also have France's payroll employment figures, which showed an increase of 0.2 percent in the third quarter.
The French economy has been performing in a better way than its German counterpart since it grew up 0.3 percent while Germany barely could avoid an economic recession, increasing just 0.1 percent in the third quarter.
By 10:32 GMT the Euro increased by 0.09 percent against the US dollar, at 1.1072. Conversely, it climbed 0.13 percent against the Japanese Yen, reaching the 120.24 level. On the other hand, it fell by 0.08 percent against the Swiss Franc, at 1.0919.