European Central Bank president Christine Lagarde resigned on Thursday, ending months of speculation about her future just as Europe enters a period of rising economic volatility and divisive electoral politics, particularly in her native France.
Lagarde will step down on February 7, giving current European Union leaders time to pick her successor before a French presidential election that polls show far-right candidate Marine Le Pen is favoured to win.
The move comes as the ECB battles inflation risks from an Iran war-driven oil shock while a sharp rise in bond yields, especially in France, threatens to dampen growth.