ECB discussing swing to tightening mode

European Central Bank policymakers are actively discussing the prospect of tightening the bank's ultra loose monetary policy, news agency Markets news reported on Friday, quoting a high up Eurosystem source.

"There is a lot of ECB Council discussion going on about moving towards a tightening bias" Market News quoted the source as saying, adding that he felt a rate hike was nowhere near imminent.

The agency said another Eurosystem source said some major central bank officials had even floated the idea of a co-ordinated rate hike, although only as a theoretical discussion.

It did not provide direct quotes to back up that line.