There will be no exceptional boost. But a doubling of the rate of A bookletfrom 1% to 2%, from August 1 in the wake of the rise in inflation, is “possible”, estimated on FranceInfo the governor of the Bank of France.
“As the application of the formula [qui prend notamment en compte l’inflation] led to a significant increase on the Livret A, and even more on the LEP (People’s Savings Book), there is, in our view, no justification for making an additional exceptional gesture,” explained François Villeroy de Galhau.
Biannual calculation
The Livret A rate is calculated automatically twice a year by taking the average between, on the one hand, the rate d’inflation average of the last six months and, on the other hand, the average of the interbank rates, at which the banks exchange short-term money.
If the Governor of the Banque de France applies the formula to the letter, his decision is binding. If he wishes to derogate from it, the decision is then made by the Economy Minister. In February, the remuneration of the booklet A had already increased from 0.5% to 1%. This remuneration could double and reach 2% after the confirmation of inflation for June, at 5.8% over one year.
Largest increase in LEP
“It will be much more for the People’s Savings Book”, accessible under income conditions, said Mr. Villeroy de Galhau. The LEP indeed follows inflation and should therefore rise from 2.2% to 4.5% on August 1, according to calculations by specialists.
Some 19 million French people can have access to the People’s Savings Book capped at 7,700 euros, but nearly half of them do not have one, said the Governor of the Banque de France who called on them to seize of this solution savings.