ECB President Lagarde steps down in order to speak out

European Central Bank President Christine Lagarde will step down from her position on February 7, according to an ECB statement released Thursday. The resignation comes several months before her term was scheduled to expire next October. Lagarde informed the ECB’s Governing Council and European Council President António Costa of her decision shortly before the announcement of a new interest rate decision.

France 24 Business reports that Lagarde is leaving early to gain more freedom to engage on matters outside of monetary policy. Gulf Times Business notes that a source with direct knowledge of the matter stated the resignation would allow her to weigh in on political matters both globally and in France. In a video shared on social media, the 70-year-old Lagarde stated she is leaving the institution with a sense of good work completed and an ECB that is fit for the future.

The departure occurs as Europe faces economic volatility, including inflation risks linked to an Iran war-driven oil shock and rising bond yields. Gulf Times Business reports the move also precedes a French presidential election where polls favor far-right candidate Marine Le Pen. The resignation has sparked a succession race as leaders seek to select a successor.

Brief written by urgent.news from France 24 Business, Hellenic Shipping News, Gulf Times Business — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.