VIENNA May 27 The European Central Bank will
discuss next week what steps it might need - including a rate
cut - to keep a euro zone economic recovery from sputtering out,
ECB Governing Council member Ewald Nowotny said on Tuesday.
"There is a discussion that goes in this direction," he told
reporters when asked about prospects for an ECB rate cut. He was
speaking on the sidelines of a news conference on the annual
report of the Austrian National Bank, of which he is governor.
He said the ECB and International Monetary Fund had
discussed at a conference this week "a situation where inflation
rates are so low that there is a danger of economic growth being
held back. We will discuss which measures we can take here."
Nowotny, who was reappointed last year to a six-year term
atop the Austrian central bank, dismissed media speculation he
could step down early and make way for ex-ECB Executive Board
member Gertrude Tumpel-Gugerell to take his place.
Asked if he would serve his term until 2019, he said: "Of
course. There is no reason to see it any other way."
(Reporting by Michael Shields and Angelika Gruber, Editing by