European Council President António Costa and the Governing Council were formally notified of the February 2027 exit date, which precedes the natural end of the term in October 2027. Former central bank governors Klaas Knot of the Netherlands and Pablo Hernandez de Cos of Spain are currently regarded as the top contenders to lead the bank. Meanwhile, policymakers are managing climbing borrowing costs that threaten economic expansion, with the deposit rate widely expected to remain at 2.5 percent before a possible December hike.
Key points
Stepping down months ahead of schedule allows EU officials to finalize central bank leade…: Stepping down months ahead of schedule allows EU officials to finalize central bank leadership ahead of France's presidential vote.
An energy price surge linked to the Iran conflict is sustaining inflation risks that may…: An energy price surge linked to the Iran conflict is sustaining inflation risks that may prompt another rate hike by December.
The monetary authority faces mounting friction between elevated public debt financing cos…: The monetary authority faces mounting friction between elevated public debt financing costs and its ongoing inflation containment campaign.
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FRANKFURT, Oct 29 : European Central Bank President Christine Lagarde announced her resignation on Thursday, ending months of speculation about her future at a complex juncture for Europe and the ECB.
Lagarde will step down on February 7, giving current European Union leaders time to pick a successor well before a French presidential election that polls show far-right candidate Marine Le Pen is favourite to win.
"European Central Bank President Christine Lagarde today informed the Governing Council and the President of the European Council António Costa that she will step down from her position on 7 February 2027," the ECB said in a press release.
The former central bank governors of the Netherlands and Spain, Klaas Knot and Pablo Hernandez de Cos, are seen as frontrunners to replace Lagarde.
Lagarde's term was scheduled to run until the end of October 2027 but speculation about an early departure had been mounting for months, with the World Economic Forum seen as a likely destination.
The move comes as the ECB is in the middle of a rate-hiking cycle, seeking to prevent an…
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