Kaiyutou Macro: Lagarde's early departure is not good for the European Central Bank

Andrew Kennigham of Capital Economics said in a report that the rumors of European Central Bank President Christine Lagarde leaving early are not good for the central bank. Lagarde's term is set to end at the end of 2027, but there are reports that she may step down early to allow French President Macron to choose her successor before the upcoming French elections next year. Kennigham said that the reports sound credible, and could damage the image of the European Central Bank as one of the most independent central banks in the world. "This shows that European politicians - like politicians elsewhere - will try to bend the rules to ensure that their favored candidate takes charge," he said. He added that this potential move is unlikely to have a major impact on monetary policy, but does pose a risk of exacerbating political tensions.