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News · EconomyThe ECB freezes rates at 2.5% and Christine Lagarde announces she is leaving early
The European Central Bank leaves rates unchanged, but analysts expect a hike in December because inflation reached 3.8%. Hours earlier, Lagarde announced she will leave the bank on February 7, 2027, nine months before the end of her term.
Translated from the original Spanish article. Read in Spanish
News published on October 29, 2026. The situation may have changed since then.
The European Central Bank (ECB), which sets the price of money in the euro countries, left its interest rates unchanged on Thursday, October 29, 2026: the main rate stays at 2.5%.
Why it isn't moving them
The ECB had already raised them twice this year, in June and September. Now it is pausing to see how the economy evolves.
But inflation is still high: it reached 3.8% in September, up from 3.2% in August, according to Eurostat. The main culprit is energy, which is almost 19% more expensive than a year ago.
The ECB's goal is inflation of around 2%. When prices rise faster, it raises rates to slow them down.
Will they rise in December?
The ECB made no promises, but analysts expect a quarter-point hike at the December 17 meeting, to 2.75%. According to the EFE agency, the council debated raising them now but unanimously decided to wait.
Lagarde is leaving
Hours before the decision, Christine Lagarde announced that she will step down as ECB president on February 7, 2027, about nine months before the end of her eight-year term, which was due to finish on October 31, 2027.
The press links the date to France's presidential election in April 2027: according to the Financial Times, Lagarde wanted to leave earlier so that Emmanuel Macron and Germany's Friedrich Merz could agree on her successor.
What it means for you
If you have a variable-rate mortgage or a loan, a hike in December would mean you pay a bit more in the coming months. And savings in the bank could earn a little more.
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Sources (in Spanish)
- La decisión, la inflación y la salida de Lagarde: Infobae España (29 de octubre de 2026).
- Debate por unanimidad y próxima reunión: Moncloa.com y Economía Responsable.
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