ECB: Leadership talk and policy outlook – Deutsche Bank

Deutsche Bank analysts note reports that Christine Lagarde may consider stepping down early as ECB President as part of a broader package of 2027 executive board appointments. Despite potential personnel changes, the bank’s baseline view is that ECB policy will remain steady, with rates on hold until mid-2027.

Lagarde speculation but policy steady

"Staying with Europe, the FT reported yesterday that Christine Lagarde is considering stepping down early as ECB President (as we mentioned as the story was breaking this time yesterday), ahead of the scheduled end of her term in October 2027."

"This potentially links to reports earlier in the week that EU leaders are discussing a package deal to fill upcoming ECB executive board vacancies at once, with Lagarde, Lane and Schnabel all due to leave during the course of 2027."

"Our European economists do not expect any early change in ECB leadership to significantly change the path of ECB policy going forward, with their baseline view that the ECB will keep rates on hold until mid 2027."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)