Lagarde Brushes Off Departure Rumors as ECB Raises Rates

European Central Bank President Christine Lagarde has dismissed rumors of an imminent announcement about her early departure from her role. The speculation began in June 2025, with reports linking Lagarde to a potential chairmanship at the World Economic Forum. She has since floated the idea of leaving the ECB early to play a role in the French presidential campaign, but will not rule out leaving before the end of her term.

Lagarde addressed the rumors during a press conference following the ECB's decision to raise its key deposit rate to 2.5%. The hike was widely expected after inflation topped the 2% price-stability target for six straight months, reaching 3.3% in August due to energy prices driven by the Middle East war.

The eurozone economy has so far held up surprisingly well, with the ECB raising its growth forecasts for 2026 and 2027 to 0.9% and 1.4%, respectively. However, further rate hikes would push rates into restrictive territory and risk damaging growth, which could tilt the chances towards further tightening.