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FRANKFURT, Sept 18 Reuters European Central Bank policymakers want to soon start discussing how to tackle the multitrillioneuro pool of excess liquidity sloshing around banks, with raising reserve requirements a possible first move, six sources told Reuters.

The debate, likely to start at the ECB39;s next meeting in Athens on Oct. 26 or at an autumn retreat for policymakers, marks a new phase in its fight against inflation.

The central bank for the 20 countries that use the euro has already raised interest rates 10 times to record levels but inflation remains well above its 2 target.

With rates likely on hold at least until December, policymakers are now starting to shift their focus to the cash that they injected into the banking system over a decade of bond purchases.

This stash of money dulls the impact of their rate hikes by reducing competition for deposits and results in hefty interest payments and ensuing losses  by some central banks.

Discussions on how to reduce excess liquidity will focus on three areas, the sources said the amount of reserves banks must keep at the ECB, the unwinding of its bondbuying programmes and a new framework for steering shortterm interest rates.

An ECB spokesperson declined to comment for this story.

RAISING RESERVE REQUIREMENT

Several policymakers are in favour of raising the amount of…