Lorenzo Bini Smaghi, a member of the executive board of the European Central Bank, last Thursday offered his recommendations on when best to begin the processes of tightening monetary policy.

In the speech, delivered in Kyoto, Bini Smaghi warned central bankers:

• Not to wait too long to raise rates, especially if the signs of recovery are apparent and interest rates are at very low levels, adding that the sooner tightening starts, the less tightening might be needed later on;

• To