Reports from the Bank of France or relevant financial publications.

Bank of France Proposes 2.4% Livret A Rate Cut for February 1, Awaiting Approval

Jan 15, 2025, 10:13 AM

The Governor of the Bank of France, François Villeroy de Galhau, has proposed lowering the interest rate of the Livret A savings account from 3% to 2.4% effective February 1. This proposal, which reflects the recent decline in inflation to 2%, awaits approval from the Minister of Economy, Eric Lombard. The change, if approved, would mark the first rate reduction for the Livret A since early 2020 and affect its 57 million holders. Additionally, the rate for the Livret d'épargne populaire (LEP), aimed at low-income households, is suggested to decrease from 4% to 3.5%. The Bank of France states that the new Livret A rate will enhance the positive trend in financing social housing and local authorities observed over the past year.