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Livret A: the Banque de France proposes an increase to 2%

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As expected, the remuneration of the preferred placement of the French will go from 1 to 2% given the galloping inflation.

The Governor of the Banque de France officially proposes this Thursday an increase in the Livret A rate to 2% on August 1 after the confirmation of inflation for June, at 5.8% over one year. A proposal accepted by Bruno Le Maire, the Minister of Economy and Finance.

This will be its highest level in almost ten years.

The Livret A rate is calculated automatically twice a year by taking the average between, on the one hand, the average inflation rate of the last six months and, on the other hand, the average of the interbank rates, at which the banks are are exchanging money in the short term.

4.6% for the popular savings account

In February, the remuneration of the booklet A had already increased from 0.5% to 1%.

This “significant” increase and that of the People’s Savings Book (LEP), which would increase at the same time from 2.2% to 4.6%, “allow to support the remuneration of savers in the face of rising prices”, says a statement from the central bank.

The LEP, capped at 7700 euros and accessible subject to income conditions, concerns some 19 million French people. But nearly half of them do not have one, said the Governor of the Banque de France who called on them to take advantage of this savings solution.

On the other hand, there will be no additional gesture. “On the Livret A account as on the LEP, we have chosen to follow the recommendations of the Governor of the Banque de France. Giving an extra boost to the Livret A account means penalizing the financing of social housing. we win on the one hand in terms of remuneration, we lose it in terms of construction of social housing and protection of the most fragile” explains Bruno Le Maire to Parisian.

Source: www.bfmtv.com

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