Aberdeen: Resignation Lagarde is the bigger story

Aberdeen: Resignation Lagarde is the bigger story

October 29, 2026

Interest Rates ECB

Felix Feather, Economist at Aberdeen Investments, comments on today's ECB rate hike:

'Lagarde’s resignation is the bigger story than today’s widely expected decision to leave rates on hold. By stepping down before the French presidential election, her departure means its winner will have no role in choosing the next ECB president — particularly significant given the political and fiscal uncertainty surrounding France.

We don’t expect the change at the top to alter the near-term rate outlook, but markets will be watching the succession closely as pressure on French government debt persists, as different candidates have different attitudes to non-standard policy tools such as the transmission protection instrument. We expect further hikes in December and March.'

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