ECB President Christine Lagarde to Leave Office in February, Well Before Term Ends

European Central Bank President Christine Lagarde will leave her post on Feb. 7 next year, nearly nine months before her term is due to finish. She made the announcement on Thursday.

"It has been a source of great pride to serve this institution. I thank all of those who have supported me on this journey over the past seven years," Lagarde said. The ECB's Governing Council gave her a standing ovation.

Lagarde has headed the central bank since July 2019. During that time the institution has had to respond to the Covid-19 pandemic, the war between Russia and Ukraine, and a run of energy price shocks that pushed inflation in the 21-nation euro area above 11%. Her term was scheduled to run until October 2027.

The news arrived just before the ECB's latest monetary policy decision, which was due later on Thursday. The bank was expected to keep interest rates unchanged, even though inflation in the euro zone reached a three-year high in September.

European Council President Antonio Costa thanked Lagarde for her "dedication." In a statement he said: "She has provided a steady and determined stewardship, helping to safeguard stability and the resilience of the euro area." He added that the process of choosing her successor will start immediately.

Born in Paris in 1956, Lagarde began her career as a senior lawyer before moving into the French government. In 2007 she became the first woman to serve as finance minister of a G7 country. She was named managing director of the International Monetary Fund in 2011, and later moved to the ECB.

According to Financial Times reporting, Lagarde is seen as a leading candidate to become the next chair of the World Economic Forum. In recent media interviews, she has indicated that she does not plan to run for the French presidency in the 2027 election.

Her departure is not the only change coming to the bank's leadership. Chief economist Philip Lane and executive board member Isabel Schnabel are also due to step down next year, and ECB leaders are now holding talks as they look to fill a number of senior roles.