European Central Bank (ECB) president Christine Lagarde has announced her resignation as Europe faces rising inflation, higher borrowing costs and growing economic uncertainty.
According to Global News, Lagarde will step down on 7 February, nearly nine months before her term was due to end in October 2027.
“I leave this institution with a sense of good work done and an ECB that is fit for the future,” Lagarde said in a video shared on social media.
Her departure will allow European Union leaders to appoint a successor before France's presidential election, where far-right candidate Marine Le Pen is leading in polls.
Former central bank governors Klaas Knot of the Netherlands and Pablo Hernandez de Cos of Spain are considered leading candidates to replace her.
Lagarde's resignation comes as the ECB struggles with rising energy prices linked to the Iran war and increasing government borrowing costs.
The central bank is expected to keep its deposit interest rate unchanged at 2.5 percent on Thursday, although another increase could follow in December.
France is facing particular pressure as investors grow concerned about its debt and political uncertainty, pushing bond yields higher.
European Council President Antonio Costa said the process of selecting Lagarde's replacement would begin immediately.
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