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Livret A: its rate should drop “around 2.5%”, according to the Minister of the Economy

“The governor of the Bank of France François Villeroy de Galhau will make a proposal to the Minister of Finance, most certainly a reduction”, and it is “around 2.5% (…) that the decision will be taken”, declared Éric Lombard, the Minister of the Economy, about the Livret A rate, this Monday morning, on France Inter.

https://twitter.com/franceinter/status/1876171282619785346?ref_src=twsrc%5Etfw

Inflation has also fallen sharply

The formula for calculating the Livret A rate, also valid for the Sustainable and Solidarity Development Booklet (LDDS), is based half on the evolution of prices over the last six months and the other half on an exchange rate between banks.

In mid-January, as soon as the final inflation figures for December are known, the governor of the Bank of France will propose a new rate to Bercy, based on the result of the calculation formula or by deviating from it.

“The Livret A rate will fall, but inflation has fallen sharply since it is around 1%,” recalled the minister.

Even with a less profitable Livret A, “savings are not only protected but they allow real assets to increase”, he explained.

The Livret A rate, which has not seen a drop since 2020, has been set at 3% since the start of 2023.

letelegramme Fr Trans

remon Buul

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