The European Council formally appointed Christine Lagarde as president of the European Central Bank for an eight-year term.

The former International Monetary Fund chief will replace Mario Draghi, effective Nov. 1. Draghi has been at the ECB's helm since November 2011.

Lagarde's candidacy was approved by the European Parliament in September. She will take over the role after the ECB rolled out a stimulus package in September despite certain dissenters within the central bank's Governing Council over the decision to restart bond purchases.