Christine Lagarde, the President of the European Central Bank, has resigned

Christine Lagarde announced her resignation as President of the European Central Bank, effective February 7. Her departure allows for a new appointment before the upcoming French presidential elections. Lagarde aims to engage more freely in political matters after her term, which was originally set to last until October 2027. The selection process for her successor has begun, with Klaas Knot and Pablo Hernández de Cos as potential candidates. Lagarde's resignation comes at a challenging time for the ECB, which is addressing inflation driven by rising energy prices and increasing bond yields. The ECB is expected to maintain its deposit rate at 2.5% but may raise it again in December.