ECB leaves rates unchanged as Lagarde announces 2027 resignation

European markets rose after the ECB left policy rates unchanged and Christine Lagarde announced her February 2027 resignation.

By Felo News Desk · Published Thu, 29 Oct 2026 20:46:24 GMT

European equity markets rose on Thursday after the European Central Bank (ECB) kept its key rates steady and ECB President Christine Lagarde said she will step down on 7 February 2027.

What happened

In London, the FTSE 100 closed up 27.57 points, or 0.3%, at 10,722.07, while the FTSE 250 rose 34.90 points, 0.1%, to 24,674.16. The AIM all‑share index added 2.53 points, 0.3%, to 763.45. Across the continent, Paris’s CAC 40 gained 1.1% and Frankfurt’s DAX 40 climbed 1.3% following the ECB’s decision.

What the reports add

Both Independent and Standard reported that the ECB left its deposit facility rate at 2.50%, the main refinancing operations rate at 2.65% and the marginal lending facility rate at 2.90%. The banks warned that rising energy prices could lift inflation risks while weighing on growth. The two outlets gave identical figures for the market moves and the policy rates.

What was said

The ECB said, “Energy prices have continued to rise, posing upside risks to the inflation outlook and downside risks to the growth outlook.” JPMorgan analyst Greg Fuzesi was quoted as observing, “The decision was expected by financial markets with the expectation that an interest rate hike will follow in December.” He added that Lagarde indicated a debate on a possible hike at Thursday’s meeting and that the ECB “could” have hiked given the data.

How it came about

Lagarde’s resignation announcement came hours after the policy decision, and she informed both the Governing Council and European Council President Antonio Costa. The timing sets up a leadership contest for the eurozone at a critical juncture for monetary policy. Felo previously covered related market moves in Asian markets rising on AI stocks and the Fed’s rate hold in Fed holds rates as markets steady, providing context for the broader global rate‑setting environment.

Key facts

ECB kept deposit facility rate at 2.50%, main refinancing rate at 2.65% and marginal lending rate at 2.90% (independent.co.uk)
FTSE 100 closed at 10,722.07, up 0.3% (independent.co.uk)
Lagarde announced she will step down on 7 February 2027 (independent.co.uk)