Christine Lagarde has officially announced her resignation as President of the European Central Bank (ECB), ending months of speculation about her future. She will step down on February 7, 2027, allowing EU leaders ample time to appoint a successor before the upcoming French presidential election, where far-right candidate Marine Le Pen is currently favored.
The ECB confirmed Lagarde’s decision in a press release, noting that she informed the Governing Council and European Council President António Costa of her plans. Her term was originally set to conclude in October 2027, but rumors of an early departure had been circulating, with the World Economic Forum rumored as her next destination.
Lagarde’s exit comes at a critical time for the ECB, which is navigating a delicate economic landscape. The bank is in the midst of a rate-hiking cycle aimed at mitigating the impact of an oil-price shock linked to the Iran war. However, it also faces rising government bond yields, particularly in France, which have increased borrowing costs for households and businesses.
Despite these challenges, the ECB is expected to maintain its deposit rate at 2.5% during its upcoming decision on Thursday, with another potential rate hike as soon as December. The bank’s press conference, led by Lagarde, is scheduled for 1345 GMT following the rate announcement at 1315 GMT.