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The Livret A rate will increase in August, according to the Governor of the Banque de France

2022-06-22T07:05:58.839Z

The livret A, the preferred savings product of the French, has been set at 1% since February 1, against a floor of 0.5% previously.



Good news for the French.

The passbook A rate will rise again in August, said Wednesday the governor of the Banque de France François Villeroy de Galhau, responsible for transmitting to the government a proposal for the evolution of the remuneration of the preferred savings product of the French.

"There will be a further increase in the Livret A on August 1," said the governor on RTL, without specifying the extent of this increase, which will be the second since the beginning of the year.

As a reminder, the Livret A account has been set at 1% since February 1, against a floor of 0.5% previously.

A rising inflation rate

The Livret A rate is calculated 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 exchange money in the short term.

Read alsoSavings: why the Livret A rate could increase on May 1

However, inflation has accelerated sharply since the start of the year, reaching 5.2% in May, according to INSEE.

The Banque de France is responsible for sending the Ministry of the Economy a proposal for changing the rate according to this formula.

Then it is up to the government to decide whether or not to give an extra boost to the result thus obtained.

In total, 81.5% of French people held a livret A, with an average woolen stocking of 5,500 euros.

To date, seven million French people hold a popular savings account, remunerated at 1%, the opening of which is subject to means testing.

15 million could actually claim it.

Source: leparis

All business articles on 2022-06-22

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