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ECB's Nowotny says low growth, inflation new normal for euro zone

[July 16, 2014]  FRANKFURT (Reuters) - The European Central Bank must pursue an active policy stance to address low growth and inflation in the euro zone even though it recognizes there is a risk of asset price bubbles forming as a side-effect, ECB policymaker Ewald Nowotny said on Wednesday.

"The new normal is a situation where we have low economic growth, low inflation, but also for the banks lower profitability, lower asset quality and less short-term funding," he said in a lecture at Frankfurt University.

(Reporting by Paul Carrel, editing by John Stonestreet)

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