ECB President Christine Lagarde to step down on February 7

Christine Lagarde has said she will step down as president of the European Central Bank on February 7. The announcement was made from Frankfurt.

The decision ends months of speculation about her future and creates a vacancy at the top of one of Europe's most powerful institutions.

The ECB confirmed her departure in a statement but gave no immediate details about her plans after leaving.

The announcement clears the way for a package deal among EU capitals over appointments to the ECB's six-member Executive Board.

Executive Board member Isabel Schnabel is due to leave in January to take a senior role at the International Monetary Fund, while chief economist Philip Lane's term ends in May.

Lagarde's departure also gives French President Emmanuel Macron a say in choosing her successor before France's presidential election next year.

Marine Le Pen, the National Rally leader, is currently the leading candidate for French president. She is a longtime critic of the EU.

Whoever takes on top roles at the ECB will face huge challenges as the fallout of the Iran war continues to hit Europe's economies.

As climate risks mount, the ECB faces a test of its commitment to green finance.

The ECB president strongly encouraged reporters to buy her memoir, Lady First, during a press conference last month.