The European Central Bank plans to revamp its system for guiding interest rate policy to take better account of credit and money supply data, as well as threats posed by asset price bubbles.

The plan which it expects to unveil next year could see the ECB take a clear stance in the global debate over the factors that central banks take into account when setting official interest rates. It might, in theory, result in the Frankfurt-based institution acting earlier against financial market distortions.