PARIS (Reuters) – The Bank of France (BdF) proposed on Monday to maintain the Livret A rate at 3%, but to lower the rate of the popular savings booklet (LEP) intended for the most modest households less than expected.
The remuneration rate for Livret A, whose calculation formula is based on the inflation rate, rose from a historic low of 0.5% to 1% on February 1, 2022, before doubling again to 2% on February 1. August, then reaching 3% on February 1.
Application of the BdF calculation formula suggests a rate of 3.9%, which is opposed by the institution which emphasizes in a press release that inflation is slowing.
Furthermore, keeping the rate at its current level will limit the cost of financing social housing and preserve the cost price of real estate loans and loans intended for small and medium-sized enterprises (SMEs), indicates the BdF.
Conversely, the LEP rate is suggested at 4.4%, but the BDF proposes to set its rate at 5% on February 1, compared to 6% currently.
This proposal was followed by the government.
“I decided, with the governor of the Banque de France, to give a boost by setting the remuneration at 5%. This is an exceptional rate on the savings market and it is significantly more than the “inflation which is at 3.7%”, commented on X the Minister of the Economy, Bruno Le Maire.
In November 2023, 10.7 million LEP accounts had been opened, against a target of 12.5 million within six months, indicates the BDF, which recalls that eight million French people eligible for LEP have not yet opened account.
(Written by Corentin Chappron, edited by Blandine Hénault)
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