Christine Lagarde has announced she will leave her post as President of the European Central Bank before her term expires.

"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.

Lagarde has led the ECB for seven years. No official reason has been given for her early departure.

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

The announcement comes ahead of a key ECB meeting this week, expected to focus on France's deteriorating public finances.

Speculation has emerged that Lagarde may be stepping down early to allow EU leaders to select her successor before French elections, which could result in a far-right victory and potentially influence the appointment process.