Christine Lagarde is stepping down from her role as president of the European Central Bank on 7 February.
This is nine months before her scheduled departure date of October 2027.
Reports have claimed Lagarde (pictured) is going to take over from the outgoing Klaus Schwab as head of the World Economic Forum.
The move also comes at a time of mounting concern over the public finances of Lagarde’s home nation, France.
Holger Schmieding, chief economist at Berenberg, said: “That she leaves early is no surprise and does not change the outlook for ECB policies and for the way the ECB deals with French risks, in our view. Only the timing of her announcement has come as a modest surprise.
“EU leaders will likely try to fill the three vacancies on the ECB’s executive board that will open up in 2027 as a package no later than the EU summit of 17-18 December, and possibly beforehand.
“According to various media reports, Germany will soon nominate a candidate to replace Isabel Schnabel as the board member in charge of market operations but not claim the presidency and probably not the chief economist position, currently held by Philip Lane,” he continued.
“For now, Klaas Knot from the Netherlands and Spain’s Pablo Hernandez de Cos remain the favourites to succeed Largarde.”
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