The rate of the Livret A, the preferred investment of millions of French people, should increase from 3% to around 2.5% from February 1. This reduction, confirmed by the Minister of the Economy Éric Lombard, comes in a context of a marked slowdown in inflation.
A first decline since 2020
The rate of the Livret A, the favorite investment of more than 55 million French people, should increase from 3% to around 2.5% from February 1, 2025. This announcement, made by the Minister of the Economy, Éric Lombard, on France Interconfirms an unprecedented development since 2020. The governor of the Bank of France, François Villeroy de Galhau, must still submit his final recommendation in the coming days, after taking into account the latest inflation figures for December.
The method of calculating the Livret A rate is based on two key elements: the evolution of prices over the last six months and an exchange rate between banks. However, the governor may propose an adjustment if economic conditions require it. “ The Livret A rate will fall, but inflation has fallen sharply, since it is around 1%. », specified Éric Lombard.
Limited impact for savers
Inflation, a crucial indicator in calculating the rate, has slowed significantly in recent months, reaching around 1% in December according to initial estimates. This development mechanically reduces the return on regulated savings such as the Livret A or the Sustainable and Solidarity Development Booklet (LDDS).
For Éric Lombard, this drop in the rate does not affect the relevance of saving on these products. “ Even with a less profitable Livret A, savings are not only protected, but they allow real assets to increase “, he justified. In other words, despite a reduction in nominal yield, low inflation guarantees a maintenance, or even an increase, in the purchasing power of savers.
Fixed at 3% since the start of 2023, the Livret A rate has until now benefited from a context of high inflation. However, this downward revision should mark a necessary adjustment to reflect current economic conditions. Livret A holders will continue to benefit from a secure and accessible investment, although a reduced return could encourage them to diversify their savings strategies.
A reaction? Leave a comment
Did you like this article? Subscribe to our free Newsletter for engaging articles, exclusive content and the latest news.
