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Christine Lagarde will step down as European Central Bank president on Feb. 7, 2027, leaving months before her term ends and setting off the search for a successor at the helm of the eurozone’s central bank.
Lagarde informed the bank’s Governing Council and European Council President António Costa of her decision Thursday, the ECB said. Her term had been due to run until the end of October 2027.
The Governing Council thanked her with a prolonged standing ovation, according to the bank’s announcement.
Costa said the process of choosing her replacement would begin immediately. He praised her leadership through the pandemic, war in Europe, energy crises, and inflation shocks since she took office in November 2019. Euro-area leaders will appoint her successor under the EU’s treaty procedures.
The announcement did not give a reason for her departure. The Financial Times reported that Lagarde has been in talks about chairing the World Economic Forum, although no appointment was confirmed in the departure announcement.
For Cyprus, the significance reaches beyond a change of leadership in Frankfurt. ECB interest-rate decisions influence the cost of mortgages and business loans, as well as the interest banks offer savers. They are part of the bank’s efforts to keep inflation under control.
Her departure alone, however, does not mean loan payments will rise or fall. Interest rates are set collectively by the Governing Council, and the effect on individual borrowers depends on their loan terms and their bank.
