ECB Holds Deposit Rate at 2.50%; Lagarde to Step Down in February 2027

The ECB Governing Council left its three key rates unchanged on 29 October (deposit 2.50%, main refinancing 2.65%, marginal lending 2.90%) after the September hike, with euro area inflation at 3.8% in September versus a 2% target. Christine Lagarde announced she will leave the presidency on 7 February 2027, about nine months before her term ends; no successor has been named. The decision came as France's 10-year bond yield topped 5% for the first time since 2002.