Tuesday, the European Central Bank Governing Council member Ewald Nowotny said the central bank will take all available measures to stabilize the inflationary expectations in the euro area and keep them anchored in the positive terrain. Nowotny is also the Governor of Oesterreichische Nationalbank.

Nowotny said the ECB will keep the interest rate very low for as long a time as is required, and stands ready to use unconventional measures of quantitative easing to assure European firms and consumers access to credit at appropriate conditions.

According to Nowotny, policymakers are confronted with two major tasks. On the one side, they must restore stability in financial markets by bringing back liquidity, recapitalizing banks and getting toxic assets off banks' balance sheets. While, the second task is to fight the global recession, and prevent it from turning into a lasting depression.

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