Christine Lagarde to step down as ECB president in February 2027

European Central Bank (ECB) President Christine Lagarde announced her resignation on Thursday, confirming she will step down on February 7, 2027. This departure occurs nine months before the scheduled end of her eight-year term in October 2027. Lagarde informed the Governing Council and European Council President António Costa of her decision, which comes amid rising economic volatility, an ongoing rate-hiking cycle, and inflationary pressures linked to an oil-price shock from the conflict in Iran. The ECB simultaneously confirmed that the deposit rate will remain unchanged at 2.5%.

While neither the ECB nor Lagarde provided an official reason for the early exit, sources suggest she intends to engage in French and global political matters, moving away from the political neutrality required by her role at the ECB. This decision sets the stage for a leadership succession process led by the European Council, with potential successors including former central bank governors Klaas Knot of the Netherlands and Pablo Hernandez de Cos of Spain. Analysts suggest the timing is calculated to allow for the selection of a successor before the upcoming French presidential election, where polls indicate a strong performance for Marine Le Pen. The process to appoint a new president will begin immediately to ensure a stable transition for the eurozone economy.