May 17, 2018 / 5:35 PM / 9 months ago

ECB's Nowotny says central bank should not wait too long to normalize policy

FILE PHOTO: European Central Bank (ECB) Governing Council member and OeNB governor Ewald Nowotny addresses a news conference in Vienna, Austria, June 9, 2017. REUTERS/Leonhard Foeger

VIENNA (Reuters) - Ewald Nowotny, a member of the European Central Bank’s Governing Council, urged the ECB on Thursday not to wait too long to normalize its monetary policy.

With quantitative easing due to expire at the end of September, policymakers have been debating what to do next.

Nowotny suggested last month in a Reuters interview that the central bank could raise its deposit rate first before moving its main interest rate later, drawing an unusual rebuttal from the ECB.

The ECB is expected to lay out in June or July how it plans to wind down the stimulus program of bond purchases it has been using to help the euro zone economy over the last three years.

“Some ECB governing council members including me think that we should not wait too long until we normalize monetary policy,” Nowotny said at an event in Vienna.

Reporting by Kirsti Knolle; Editing by Andrew Heavens

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