ECB Holds Interest Rates Steady as President Christine Lagarde Announces Resignation

The European Central Bank (ECB) has decided to keep its key interest rates unchanged. This decision comes amidst rising energy prices, which pose upside risks to inflation and downside risks to growth, though underlying inflation has remained stable with no significant wage response so far. In a significant development, ECB President Christine Lagarde announced her intention to step down on February 7, 2027, before the end of her term. The central bank's latest Survey on the Access to Finance of Enterprises for Q3 2026 also indicated that businesses in the Euro Area are facing increased borrowing costs and reduced access to bank lending.