The institution recommends an increase in the Livret A rate, in response to the rise in inflation linked to the conflict in the Middle East.
The Banque de France announced its proposed change for the Livret A rate: in August, it could increase from 1.5 to 1.7%. This increase is explained by the rebound in inflation since the outbreak of war in the Middle East. This is the first rate increase in eighteen months. The proposal must be approved by Bercy during the day, for entry into force on August 1.
The new rate “is up slightly compared to the current rate of 1.5% set last January, and remains above the average inflation level observed over the last six months”, specifies the central bank in its press release. This rise in prices, following the geopolitical crisis in the Middle East, led the monetary institution to review its recommendation for the preferred investment of the French. Inflation peaked at 2.4% year-on-year in May, according to INSEE.
The Livret A rate is calculated according to a formula taking into account the average of inflation and the €ster interbank rate. This calculation also applies to the Sustainable and Solidarity Development Booklet (LDDS). The final decision on the Livret A rate, however, rests with the Minister of the Economy. Forecasters expected a rise of between 1.7 and 1.8%.
Maintaining the LEP rate at 2.5%
Alongside this proposal, the Banque de France suggests maintaining the rate of the popular savings account (LEP) at 2.5%, while the formula would reduce it to 2.2%. The LEP thus retains a boost which brings its remuneration 0.8 percentage points above that of the Livret A. This maintenance aims to support the adoption of the LEP, reserved for low-income households, which caps at twelve million holders despite ambitious opening objectives.
The Minister of the Economy, Roland Lescure, announced that “the rate of the livret A will be[it] oriented upwards on the proposal of the governor of the Bank of France in the summer”. This development comes as the Livret A has had a series of months of withdrawals since January, an unprecedented dynamic since the start of the Caisse des Dépôts statistics, in 2009. At the end of May, the 58 million Livrets A accumulated 444.6 billion euros, according to the Caisse des Dépôts. The Livret A rate has evolved significantly since the Covid-19 pandemic, going from 0.5% in 2021 to 3% between February 2023 and January 2025, then gradually decreasing until reaching 1.5% in January 2026.
