ECB president Christine Lagarde resigns nine months ahead of schedule, citing desire to speak freely, while the bank signals possible stimulus amid falling core inflation.

European Central Bank (ECB) President Christine Lagarde announced she will leave her post in March, nine months before the end of her term, saying the neutrality rules of her position prevent her from taking part in public debate on financial and economic issues. Lagarde said she wants the freedom to speak her mind about world affairs and to confront what she calls the “misrepresentation of the truth.”

ECB’s policy outlook

Even as Lagarde prepares to depart, the ECB has signalled a shift toward policies aimed at boosting growth. Officials indicated that, given the eurozone’s low inflation environment, the bank may consider measures to support the economy, though no concrete stimulus package was announced at the latest meeting.

Market reaction

The news of Lagarde’s early exit and the lack of immediate stimulus surprised investors, leading to a muted response in equity markets. Traders had hoped for a clear policy move, but the ECB’s cautious stance left markets disappointed.

What traders are watching

• Further ECB communications on growth‑supporting tools
• Eurozone core inflation trends and any sign of a sustained decline
• Potential leadership candidates and their policy inclinations

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This article is compiled from international market news for information only. It is not investment advice.