ECB Holds Rates at 2.5% as Christine Lagarde Announces Resignation
Key Facts
The European Central Bank ECB maintained interest rates at 2.5% following its monetary policy meeting this Thursday, October 29, 2026. President Christine Lagarde announced her resignation from the bank effective February 7, 2027, alongside the rate decision.
The decision to hold rates follows data showing the Eurozone Economic Sentiment index reached 18.5 on October 29, 2026, missing earlier forecasts. This follows a decline in the Composite PMI to 51.9 on October 23, 2026, which indicated a slowdown in growth momentum across the region's key sectors.
The Eurozone quarterly GDP growth rate and unemployment figures are scheduled for release tomorrow, Friday, October 30, 2026. Markets are also awaiting the annual Inflation Rate data on November 4, 2026, which will provide further direction for the ECB's future leadership.
Latest Updates · 11
- Notable·
Update: The euro fell to a 17-month low of approximately 1.11 dollars on October 29, 2026. This move marks a 4.97% decline for the single currency against the dollar since the start of 2026, following today's ECB announcements.
- Major·
Update: ECB sources reported that policymakers are planning a rate hike in December followed by a pause. Internal staff estimates suggest that higher bond yields will cut economic growth by 100 basis points and reduce inflation by 90 basis points during the 2027-2028 period.
- Notable·
Update: Christine Lagarde confirmed that the ECB discussed raising interest rates during its meeting on October 29, 2026. Lagarde noted that the door remains open for further monetary tightening despite the decision to hold rates steady.
- Notable·
Update: The Euro declined against major currencies and Eurozone bond yields fell following the ECB decision and Christine Lagarde's resignation announcement. These movements reflect the immediate market response to the upcoming change in central bank leadership and the steady monetary policy stance.
- Notable·
Update: Currency markets saw significant movement following these announcements, with the US dollar rising sharply against the Euro today, October 29, 2026. The pressure on the single currency followed the uncertainty triggered by Christine Lagarde's decision to step down from her post.
- Notable·
Update: The ECB specified the main refinancing rate at 2.65% and the marginal lending rate at 2.90% on October 29, 2026. The bank also issued a warning regarding inflationary risks stemming from a prolonged energy shock.
- Notable·
Update: Financial markets saw an immediate response to the news, with European stocks and government bonds rallying during trading on Thursday, October 29, 2026. The rally followed the confirmation from Christine Lagarde regarding her intention to step down from her post next February.
- Notable·
Update: The European Council has launched an immediate search for Christine Lagarde's successor at the ECB. Council President Antonio Costa noted on October 29, 2026, that her resignation occurs 9 months before her official term was set to expire.
- Major·
Update: Reports indicated on October 29, 2026, that ECB President Christine Lagarde will leave her post early. This unexpected development comes at a sensitive time as the bank concludes its monetary policy meeting, potentially adding uncertainty regarding the bank's future leadership and the Eurozone's monetary path.
- Major·
Update: ECB President Christine Lagarde announced that she will step down from her position on February 7, 2027. This announcement comes as the bank holds its monetary policy meeting this Thursday, October 29, 2026.
- Notable·
Update: Analysts suggest the ECB is likely to follow the U.S. Federal Reserve's lead in its upcoming policy direction. This shift comes as panic in the French bond market outweighs concerns over inflation within the Eurozone.