European Central Bank President Christine Lagarde has committed to not stepping down before 2027, her clearest signal yet on her tenure, suggesting that eurozone governments may soon need to start searching for her successor.
The French official refused to be "confined" to a fixed arrangement but pledged to preside over at least three more interest rate decisions. This puts one of the most influential policy roles in the global economic system on track for a succession race that could begin in less than five months.
"You won't see me leave before 2027," Lagarde told reporters on Thursday. She added that she would not resign under adverse conditions, stating, "When storm clouds gather, the captain stays on the ship."
These remarks represent Lagarde's most definitive guidance to date on a potential departure, while also leaving room for her to complete her term as originally planned in October of next year.
If Lagarde chooses to step down in 2027, French President Emmanuel Macron would be able to participate in selecting her successor, rather than leaving the matter to the person who replaces him after the spring elections.
Economists consider Pablo Hernandez de Cos, the former Governor of the Bank of Spain and current General Manager of the Bank for International Settlements, to be the most likely candidate to succeed Lagarde.
Spanish newspaper Expansión reported earlier this week that the Madrid government plans to support Hernandez de Cos's bid for the ECB presidency.
Surveys indicate another strong contender is Klaas Knot, who stepped down as President of the Dutch central bank last year.
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