European Central Bank (ECB) head Christine Lagarde to step down in February, before her term ends

Christine Lagarde, who has headed the European Central Bank for seven years, has announced that she is stepping down prematurely from the position.

"European Central Bank President Christine Lagarde today informed the Governing Council and the president of the European Council Antonio Costa that she will step down from her position on 7 February 2027," the ECB said in a statement.

European Council President Antonio Costa said a process to find her successor would start immediately.

The announcement comes ahead of a key meeting of the bank this week that is likely to focus on France's deteriorating public finances.

No reason has so far been given for Lagarde's premature departure, but there has been speculation that she would leave early to enable EU leaders to choose her successor before French elections that could see a far-right victory and influence the choice.

This is a developing story. More to follow.