ECB keeps interest rates steady, Lagarde signals move for December

The European Central Bank (ECB) decided to keep interest rates steady at its October meeting, while President Christine Lagarde stated that a new rate hike in December is on the table and announced that she will leave her post as of February 7, 2027, ahead of her term normally expiring in October 2027.

The European Central Bank kept interest rates unchanged at its October meeting, leaving the deposit facility rate at 2.50 percent, the main refinancing operations rate at 2.65 percent, and the marginal lending facility rate at 2.90 percent. Speaking to members of the press in Frankfurt, ECB President Christine Lagarde stated that current economic conditions could have justified a rate hike at today's meeting as well, noting that the Governing Council discussed this option but refrained from this step for now due to tightening financing conditions. It was conveyed that whether a new step will be taken next December depends on the data to be released over the next six weeks.

Answering questions regarding her term in office at the end of the meeting, Christine Lagarde stated that the institution's corporate structure is robust and announced that she will leave her term, which would normally expire in October 2027, as of February 7, 2027.