ECB President Christine Lagarde to step down in February, months before her term ends

Christine Lagarde will step down on 7 February 2027, around nine months before the end of her eight-year term. The ECB is set to announce its latest monetary policy decision later Thursday. Christine Lagarde will step down as president of the European Central Bank (ECB) on 7 February 2027, the bank announced on Thursday, about nine months before her eight-year term was due to end. The announcement came as the ECB prepared to unveil its latest interest rate decision. Lagarde informed the ECB’s Governing Council, which sets interest rates for the eurozone, and European Council President António Costa of her decision, the bank said in a statement. The ECB gave no reason for her departure. “The Governing Council thanked President Lagarde warmly and gave her a long standing ovation,” the statement said. European Council President António Costa has thanked Lagarde for her service, praising her “dedication as President of the European Central Bank since November 2019”. “To ensure a smooth transition to the next leadership of the ECB, the process for the appointment of her successor will be initiated today and will proceed without delay,” Costa said. Her successor will be appointed by the European Council, which brings together EU leaders. Under EU rules, the president is appointed by a qualified majority vote, following a recommendation from EU finance ministers and consultations with the European Parliament and the ECB’s Governing Council. Lagarde, a former French finance minister and managing director of the International Monetary Fund (IMF), took office in November 2019. Speculation about an early departure had been building for months. The ECB is widely expected to keep its deposit rate at 2.5% on Thursday. Lagarde is due to face reporters after the decision. This is a breaking news story and will be updated