ECB president Lagarde says central bank ready to intervene in markets if necessary– business live
Christine Lagarde says she decided to step down early because she wants to have ‘freedom of speech’ The Institute for Fiscal Studies said Wednesday’s budget was “broadly the budget that many people were expecting”. IFS director Helen Miller told journalists at a press briefing: A relatively small cost of living package and a handful of tax rises. Borrowing higher across the rest of the decade. Nod
double quotation markOn paper, she is not the first ECB president to step down before the end of the official term. The first president, Wim Duisenberg, also stepped down earlier. But while Duisenberg’s decision had been part of a political deal when setting up the ECB, Christine Lagarde’s decision seems to be a personal one. With Lagarde, a very different president than her predecessors will leave the ECB. Lagarde differed in terms of style and tone, and interpreted the role of ECB president more as a moderator and chairperson of the entire Governing Council, rather than a thought leader.
With Lagarde and Isabel Schnabel, two of the six ECB’s Executive Board members will now leave before their respective ends of their terms in office. Some have argued that this might leave some bruises on the ECB as an institution, but we think that the ECB’s reputation is stronger and more stable than that. In the race for succession, the ball is now with European government leaders to now decide on a package deal, Lagarde, Schnabel and also Lane, probably at the European Council meeting in December.
Currently, the two main contenders for Lagarde’s succession are Pablo Hernández de Cos from Spain and Klaas Knot from the Netherlands. Both excellent candidates who would bring a high level of monetary policy expertise to the table.
