ECB's Nowotny: Must normalize policy not too soon but not too late

Ewald Nowotny, the governor of Austria's central bank and a member of the Governing Council of the European Central Bank (ECB), during a scheduled speech in London talked about the central bank’s plans to end its 2.5 billion euro stimulus program this year and said:

   •  We are at an important turning point in monetary policy
   •  We have very strong economic expansion, but an unequal one
   •  Inflation still below target is one of the main issues ECB has to discuss
   •  Inflation is at the core of normalizing policy
   •  Tightening of monetary policy is even more complex due to huge scale of recent stimulus
   •  There is a risk of stifling recovery if ECB tightens too soon
   •  There is a risk of a boom in assets if ECB tightens too late