The calculation formula would have led to a rate of 4% or even 4.1%… but the Minister of Economy and Finance Bruno Le Maire finally announced this Thursday, July 13 a return of 3% on August 1. This rate will exceptionally remain in force until January 31, 2025.
The suspense was skillfully maintained until Thursday, July 13, 1 p.m. Bruno Le Maire spoke on the TF1 newscast to announce the new Livret A rate. If the calculation formula would have made it possible to increase it to 4%, the Minister of Economy and Finance has decided to maintain it at 3% for the next few months. This new rate will be in effect on August 1st.
“There is also good news”
“There is also good news”, added Bruno Le Maire, who affirms block the Livret A rate at 3% until January 2025. A lasting blocking of the rate, for 18 months.
Bruno Le Maire also formalized the update of the People’s Savings Book (LEP) rate, the formula of which is more directly correlated to inflation. Inflation having slowed slightly, the LEP will therefore only have spent 6 months above the 6% mark, but… its rate will only “fall” on August 1 from 6.1% to 6%.
Rates in effect from August 1, 2023
A new increase to come?
These rates must be formalized via a notice to the Official newspaper by the end of July. Should we then expect a further increase in 2024? No, Bruno Le Maire having insisted that the rate will be blocked at 3% for 18 months.
In any case, a new rise would have been unlikely to occur. The formula for calculating the Livret A rate takes into account two factors: an average of inflation in recent months and money market rates. However, inflation remains very high (4.5% in June) but it has already reached its peak and now remains on a “plateau” before potentially falling back to return to around 2% at the end of 2024 and in 2025. In this context, it was not ruled out that the Livret A rate would drop below 3% by 2025. On this point, maintaining it at 3% over 18 months is indeed a long-term “gesture” for the portfolio of the French, but not in the short term.