Nearly 3 out of 4 French people have a Livret A.A preferred investment for savers, this product sees its rate reassessed four times a year: on February 1, May 1, August 1 and November 1. According to the official website of the Ministry of the Economy, a change in the rate cannot exceed 1.5%. Its calculation is based on several data, including inflation for the last twelve months.
Faced with a historic rise in consumer prices, the remuneration of the Livret A was revised upwards several times in 2022 and 2023. Last February, its rate reached 3%. An amount certainly advantageous, but still lower than inflation established at 6% in one year.
While a further rate hike could have been decided in May, the next rate hike will have to wait until at least August. And for good reason: on May 1, only the Governor of the Banque de France is able to propose an intermediate revision of the Livret A as well as the LDDS.
In the columns of Le Figaro, the Ministry of the Economy specifies that this spring revision can only take place in the event of “exceptional variation in inflation or short-term interest rates compared to the date of the previous revision. “.
According to the strict application of the calculation formula, the Livret A rate should have gone from 3 to 3.30% on May 1st. Deeming a new remuneration “unfavorable to the cost of financing the economy”, the Governor of the Banque de France has therefore decided to ignore it.
Next August, therefore, a new revaluation is expected. What are the forecasts?
If it is still early to estimate the new remuneration of the Livret A by August, the site Boursier.com ensures that we can hope for “a rate of remuneration of 4% this summer”. In question, an average inflation which could rise to 5.5% for the first half of 2023, as well as the sharp rise in interbank rates. According to the strict application of the formula, the rate of the Livret A could thus rise to 4.1%. “As always, the result of this calculation would then be analyzed by the Banque de France in mid-July with the possibility of rounding the final rate which is then subject to the final decision of the government”, specifies the site specialist in questions of ‘money.
But here it is: the banks intend to block the rate of the Livret A at 3%.
According to information from Les Echos, banking establishments and other professionals in the sector are opposed to a further increase in the Livret A. Among the players who are stepping up to the plate: Banque Postale, Crédit Mutuel and the BPCE group. According to an expert interviewed by the French daily, maintaining the remuneration of the savings account at 3% would be beneficial for the banks, of course, but also for “the Caisse des dépôts, which finances social housing, and the entire French economic ecosystem in reality”.
Next July, the Banque de France will be responsible for communicating its recommendations on whether or not to raise the Livret A rates.
