Christine Lagarde to leave ECB early on February 7, 2027; bank holds rates steady
The European Central Bank president announced she will step down months before her term ends, starting a race to succeed her, on the same day the bank kept its deposit rate at 2.50%.
European Central Bank President Christine Lagarde will step down on February 7, 2027, well before her eight-year term was due to end in late October 2027, the ECB said on Thursday.
According to the bank, Lagarde informed its Governing Council and European Council President Antonio Costa of her decision. Her successor will be chosen by the European Council under the nomination procedure in Article 283 of the EU treaties. Costa said the selection process would start immediately to ensure a smooth handover.
Need your university transcripts?
Studying or working abroad? FACTS gets your official transcripts and documents for WES, ECA, IQAS and universities worldwide, without you visiting the campus.
No official reason given
The ECB statement did not give a reason for the early exit. Lagarde, a former French finance minister and IMF chief, has led the bank since November 2019. Reports in recent months had linked her to a possible role at the World Economic Forum, and German news agency dpa noted speculation that she wanted to leave before France's presidential election in April, so that the appointment would be settled while President Emmanuel Macron is still in office.
Names mentioned in European media as possible successors include former Dutch central bank chief Klaas Knot, Bank for International Settlements head Pablo Hernandez de Cos and Bundesbank President Joachim Nagel. The term of ECB chief economist Philip Lane also ends in 2027, which could lead to a wider reshuffle at the top of the bank.
Rates left unchanged
Separately, the ECB left its three key interest rates unchanged on Thursday, keeping the deposit facility rate at 2.50%, the main refinancing rate at 2.65% and the marginal lending rate at 2.90%. The bank said rising energy prices linked to the Middle East conflict pose upside risks to inflation and downside risks to growth, and repeated that it would decide meeting by meeting rather than commit to a rate path.
Why it matters for India
The ECB sets policy for the euro area, one of India's largest trading partners and an important source of foreign investment. The identity of Lagarde's successor and the bank's response to high energy prices will influence the euro, European demand for Indian exports and global capital flows into emerging markets such as India.
Hiring? Screen before you sign
Education, employment and identity checks for companies of every size, by an ISO-certified screening team.
Related stories
WorldSpain mourns as high-speed train crash toll rises; probe focuses on control centre order
At least 69 people died when a Renfe train ran into a stationary Iryo train near Urda in Toledo province on Wednesday, Spain's worst rail disaster in years.
WorldIsrael's near-final count leaves Netanyahu bloc at 53 seats, short of a majority
With most votes counted, neither Benjamin Netanyahu's camp nor the opposition led by Gadi Eisenkot can reach 61 seats on its own, while Arab parties are projected to win 19.
WorldUN General Assembly again condemns US embargo on Cuba; India votes in favour
The resolution passed with 130 votes in favour, 17 against and 25 abstentions, a narrower margin than in past years after a US lobbying push.