The dynamics of an annular layer of low-viscosity liquid inside a rapidly rotating horizontal cylinder is experimentally studied. Under gravity, the liquid performs forced azimuthal oscillations in the cavity frame. We examined the stability of the two-dimensional azimuthal flow and discovered two novel types of axisymmetric liquid flows. First, a large-scale axially symmetric flow is excited near the end walls. The inertial modes generated in the corner regions are proven to be responsible for such a flow. Second, a small-scale flow in the form of the Taylor-Gortler vortices appears due to the centrifugal instability of the oscillatory liquid flow. The spatial period of the vortices is in qualitative agreement with the data obtained in the experimental and numerical studies of cellular flow in librating containers.