The European Central Bank kept its rate unchanged at 2.5%, Lagarde to leave her post in February

The European Central Bank kept its key interest rate at 2.5%. On the same day, Christine Lagarde announced that she will step down from the ECB presidency on February 7, 2027, roughly eight months before her term expires.

The bank continues to view rising energy prices as the main risk to inflation. At the same time, high interest rates are also slowing economic activity.

Following the decision, the euro weakened, while yields on short-term government bonds declined.

Lagarde's departure coincides with a difficult period for the eurozone. Concerns over France's sovereign debt remain on the agenda, and several changes are also expected in the ECB's leadership in 2027.

Another rate hike in December remains a possible scenario.

Source: Reuters