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ECB's Lagarde launches policy overhaul

A new decade, a new ECB chief.

Christine Lagarde used her first policy meeting of 2020 to launch a strategic review of how things have been done - until now.

First, though, there was the more usual business of monetary policy.

(SOUNDBITE) (English) ECB PRESIDENT, CHRISTINE LAGARDE, SAYING:

"Based on our regular economic and monetary analysis, we decided to keep the ECB interest rates unchanged."

Rates on hold then - but the parameters by which they're set could well change ...

In a sweeping investigation of whether those parameters still fit.

Despite a massive injection of funds into the euro zone economy through bond-buying and low to negative rates,

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The ECB has fallen short of its inflation target - just under 2 per cent - for years.

That target one thing to be looked at - how climate change should be incorporated into policymaker thinking another.

As to how long the review might take:

(SOUNDBITE) (English) ECB PRESIDENT, CHRISTINE LAGARDE, SAYING:

"We will have a new strategy when we have concluded the exercise ... and our hope is that we can agree on that new strategy of the European Central Bank around November, December."

The ECB is widely expected to leave monetary policy on hold until the review is completed.

And why not, say most analysts, when despite some - quote -"moderate" economic growth - euro zone manufacturing and confidence are still fragile.