The ECB rate decision on Thursday, October 29, 2026, left borrowing costs in the euro area where they were, with the deposit rate staying at 2.50%. However, the bigger surprise came first: a few hours earlier, President Christine Lagarde told the Governing Council she will step down on February 7, 2027.
Key facts (as of October 2026)
- The ECB kept its deposit facility rate at 2.50%, its main refinancing rate at 2.65% and its marginal lending rate at 2.90%, according to its October 29 press release.
- Christine Lagarde will leave the ECB presidency on February 7, 2027, roughly nine months before her term was set to end in October 2027.
- The next ECB monetary policy meeting ends on December 17, 2026, followed by a press conference, according to the ECB’s meeting calendar.
What happened at the ECB on Thursday?
Two announcements landed on the same day. First, the ECB said Lagarde had informed the Governing Council and European Council President António Costa that she will step down early. Then, in the afternoon, the bank published its policy statement and kept all three key interest rates unchanged.
The hold was widely expected, according to Agence France-Presse. The agency also noted that the bank had already raised that rate twice this year, so Thursday was a pause rather than a turn.
Lagarde then took questions from reporters at a press conference in Frankfurt, which started at 14:45 CET. In other words, viewers in London could watch from 13:45 GMT, and viewers on the US East Coast from 9:45 a.m. ET.
Why was the ECB rate decision a hold?
The short answer is that the bank sees risks pulling in two directions. In its statement, the ECB said rising energy prices pose upside risks to inflation and downside risks to growth. At the same time, it said underlying inflation has stayed broadly stable so far, and wages have not reacted in a material way.
The bank also flagged that financing conditions have tightened since its previous meeting. That matters because tighter credit can cool prices on its own, so the ECB may need to do less with its own rate. AFP reported that euro area inflation reached 3.8% in September, a three-year high, while the energy shock linked to the conflict in the Middle East kept fuel costs high.
For now, the ECB says it will decide meeting by meeting and is not committing to any particular path for rates. Across the Channel, the picture looks different: most economists expect a rise at the Bank of England’s November 5 meeting, which you can also watch live.
Why is Lagarde leaving the ECB early?
The ECB did not give a reason in its short statement. Instead, it said the Governing Council “gave her a long standing ovation” when she shared the news.
Several outlets had reported for months that an early exit was possible. According to AFP, leaving in February lets EU leaders choose a successor before France’s presidential election in spring 2027. Lagarde, a former French finance minister and former head of the International Monetary Fund, has led the ECB since November 2019.
Who could replace Lagarde, and how is the next ECB president chosen?
Euro area leaders in the European Council appoint the next president. The ECB said this follows Article 283 of the EU treaty. Under that process, finance ministers make a recommendation, and leaders then consult both the Parliament and the bank’s own policy council before deciding by qualified majority.
Costa said the process “will be initiated today and will proceed without delay,” as reported by Euronews. According to Euronews, two names lead the race: Pablo Hernández de Cos, the former Bank of Spain governor whom Madrid put forward in July, and Klaas Knot, the Dutch central bank’s governor between 2011 and 2025. Germany’s Bundesbank chief, Joachim Nagel, has been named as a possible contender too, the outlet added.
How have European leaders reacted?
The early reactions were warm and focused on her record. For example, EU Perspectives reported that Commission President Ursula von der Leyen thanked Lagarde for steering the euro area through the pandemic and the fallout from Russia’s war against Ukraine. Costa also praised her leadership in uncertain times.
On the markets side, AFP said investors were watching the press conference for signals on France’s rising borrowing costs. French bond yields recently hit their highest level since 2002, according to the agency, although the ECB’s statement did not mention France directly.
What happens after this ECB rate decision?
There are two dates to watch. First, the ECB holds its next policy meeting on December 16 and 17, 2026, with a press conference on the second day. AFP reported that most economists expect one final rate rise in December, when new staff forecasts are due.
Second, the ECB calendar lists a meeting on February 3 and 4, 2027. Since Lagarde leaves on February 7, that February 4 press conference is likely to be her last as president.
| Event | Date | What to expect |
|---|---|---|
| ECB policy meeting and press conference | December 17, 2026 | Rate decision plus new growth and inflation forecasts |
| ECB policy meeting and press conference | February 4, 2027 | Likely Lagarde’s final press conference |
| Lagarde steps down | February 7, 2027 | Successor chosen by euro area leaders |
How to watch the next ECB rate decision live
The ECB streams every press conference free on its own website, and it also posts the full video on its official YouTube channel. So the easiest legal option is the ECB press conference page, which also offers a low-latency audio stream.
For live analysis around the event, several news channels cover ECB days closely:
- Euronews streams free on its website and app, and it covers ECB announcements for European viewers.
- Bloomberg Television usually carries markets reaction around central bank decisions.
- CNBC covers euro and bond moves for US investors during the morning ET.
- DW News offers a free English stream with a German and EU focus.
If you are in the US and want to time it, our UK and US time difference guide helps you convert Frankfurt times. You can also find more live-event coverage in our Hot Topics section.
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Frequently asked questions
What was the ECB rate decision in October 2026?
The ECB kept all three key rates unchanged on October 29, 2026. As a result, the deposit facility rate stays at 2.50%, the main refinancing rate at 2.65% and the marginal lending rate at 2.90%.
When does Christine Lagarde leave the ECB?
She steps down on February 7, 2027. Her eight-year term would otherwise have run until October 2027.
When is the next ECB rate decision?
The next decision comes on December 17, 2026, after a two-day meeting in Frankfurt. The ECB then holds a press conference, which it streams free on its website.
