Vienna - The economist and banker Ewald Nowotny took office as new Governor of the Austrian national bank on Monday, the bank said in a statement.

As the head of the Oesterreichische Nationalbank (OeNB), 64-year-old Nowotny is also a member of the Governing Council of the European Central Bank (ECB), which sets interest rates in countries using the euro.

In the past, Nowotny has criticised the ECB's strict anti-inflation policy, calling on the bank to focus also on economic growth and employment. His predecessor, Klaus Liebscher, had a hawkish position on price stability.

After a career as an economics professor at the Vienna University of Economics and Business Administration, Nowotny led the Austrian BAWAG PSK bank for two years until the end of 2007.

The social democratic economist took over as BAWAG CEO in 2006, when the bank was nearly collapsing after management had squandered funds in high-risk investments.

Nowotny's term at the OeNB lasts until 2013. (dpa)