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The Livret A rate should continue to rise in 2023 according to the Banque de France

2022-07-19T11:22:20.192Z


The governor of the Banque de France indicated on Tuesday that the increase in the Livret A rate, which rose to 2% on August 1, was probably not...


The Governor of the Banque de France said on Tuesday that the rise in the Livret A rate, which rose to 2% on August 1, was probably not over and called for mobilization for the Livret d'épargne populaire (LEP).

"

In all probability (...) the upward movement of the Livret A rate will continue on February 1 of next year

," said François Villeroy de Galhau, without speculating on a figure, on the occasion of a press conference on regulated savings.

Read alsoThe solutions of the Banque de France against inflation

The Livret A rate, which started 2022 at a low of 0.5%, doubled for the first time on February 1 and will double again on August 1, while maintaining a negative yield due to the level of inflation.

The remuneration of this savings account, a savings product held by the most French people, depends on inflation (5.8% in June) and interbank rates, at which banks exchange short-term money.

However, inflation is, it seems, not yet at its peak and the increase expected from Thursday in the key rates of the European Central Bank (ECB) should lead the second component of the formula upwards.

Promote the People's Savings Account

The Governor of the Banque de France also insisted on the interest of the People's Savings Book (LEP) whose remuneration will rise to 4.6% on 1 August.

It is reserved for households with little or no tax.

Of the 18.6 million eligible French people, only 6.9 million people (37%) had one at the end of December 2021 and its outstanding amount has fallen sharply since 2008, from 65.1 billion euros to 38.3 billion euros today.

The "

first priority

" is to "

further equip

" the French who are entitled to it, said François Villeroy de Galhau, in order to open "

millions of additional LEPs in the years to come

".

To do this, “

the mobilization of all, including banking networks, must continue

”.

Source: lefigaro

All business articles on 2022-07-19

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