ECB chief Lagarde to step down before term ends

European Central Bank President Christine Lagarde has announced she will step down on February 7, nine months before the end of her term.

The 70-year-old Lagarde's eight-year term was due to run until October 31, 2027.

She has expressed a wish to speak more openly on matters beyond monetary policy once free of the political neutrality the post requires. She called leading the ECB an honor and a privilege.

Her decision gives European Union leaders the chance to choose a new president before France's 2027 presidential election. According to analysts, the timing was chosen to avoid the appointment being shaped by the outcome if right-wing candidate Marine Le Pen wins that election.

European Council President Antonio Costa said the process to select a new president would begin immediately.

The ECB sets interest rates for the 21 countries that use the euro, a decision that determines borrowing costs for everything from buying a home to starting a business.