European Central Bank (ECB) Governing Council member Erkki Liikanen said on Tuesday that there are downside risks to the Eurozone's inflation and growth outlook, adding that the central bank is ready to act.

"The growth and inflation outlook is still subject to downside risks," he said.

"The Governing Council is willing and able to act by using all the instruments available within its mandate if warranted in order to maintain an appropriate degree of monetary accommodation," Liikanen noted.