European Central Bank President Christine Lagarde will leave her post on Feb. 7, nearly nine months before her term ends. The ECB must now find a successor and replace other senior officials who are also due to depart next year.
European Central Bank President Christine Lagarde will step down on Feb. 7, nearly nine months before her term expires, she announced Thursday. In a post on X, she put the date at 7 February 2027.
Her departure comes ahead of the ECB's latest decision on monetary policy, due later Thursday. The bank is expected to hold interest rates even though inflation in the 21-nation euro zone hit a three-year high in September.
Lagarde's record at the ECB
Lagarde has led the bank since July 2019. During that time she steered its policy responses to the Covid-19 pandemic, the Russia-Ukraine war and a series of energy price shocks that pushed inflation in the euro area above 11%. Her term was due to end in October 2027.
Lagarde said: "It has been a source of great pride to serve this institution." The Governing Council gave her a standing ovation Thursday.
European Council President Antonio Costa thanked Lagarde for her dedication and said the process of appointing her successor will begin immediately.
Who could replace her
The ECB's leadership is now in talks as the bank looks to fill several senior roles. Chief economist Philip Lane and executive board member Isabel Schnabel are also due to step down next year.
Former Netherlands central bank head Klaas Knot and former Spanish central bank head Pablo Hernández de Cos are widely regarded as top contenders to succeed her. ING's global head of macro Carsten Brzeski told CNBC that nationality will also matter, and that Knot might find more support among Northern European governments.
Sources: CNBC, Cointelegraph
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