Lagarde Will Leave as ECB President on Feb. 7, 2027

Overview

• Christine Lagarde announced Thursday that she will resign and step down on February 7, 2027, eight months before her mandate ended.
• The European Council will appoint her successor and markets and officials name Klaas Knot and Pablo Hernández de Cos as the leading candidates.
• The ECB held its deposit rate at 2.50% the same day, and officials said policy will be decided meeting by meeting as the bank watches inflation and energy-price shocks.
• Some EU politicians warned the timing sends the wrong signal about central-bank neutrality ahead of France’s presidential vote, while Lagarde said she leaves to gain freedom to speak on political and public policy issues and will not run for president.
• Lagarde departs as other senior ECB posts will also turn over soon, leaving continuity dependent on new tools the bank created, such as the Transmission Protection Instrument, and on the outcome of the leadership negotiations.