After a year marked by record inflation, the popular savings account having been revalued in 2023 to the delight of its holders, could reverse course to the great misfortune of the general public!
Inflation and rates of popular savings accounts in 2023
The latest news about inflation in France show an impact on popular savings accounts (LEP). INSEE figures indicate that even if inflation is lower in the second half of 2023 than at the start of the year, the rates of the Livret d’Épargne Populaire could be adjusted in the coming months. Aligned with the level of inflation, these changes are expected following the unexpected maintenance of Livret A and LDDS rates at 3% net until January 2025.
INSEE forecasts lower inflation in the second part of 2023. Adjustments to the Popular Savings Book rate are possible. Livret A and LDDS rates will remain at 3% net until January 2025.
Impact of recent reforms on the rates of the Popular Savings Booklet
Since the 2018 reform, the rate of the Popular Savings Booklet has been set in relation to average inflation excluding the previous semester. To hope to see the LEP rate increase in February, this index would have to exceed the 6% during this semester. However, INSEE estimated average inflation for the current semester at 4.30%. With a gap of more than 1.5 points between the current LEP rate and inflation, it is difficult to imagine that the Banque de France would not recommend a rate cut from February 1.
What decision to expect from the Banque de France?
François Villeroy de Galhau, governor of the Bank of France, was questioned on the subject without giving further details. He could strictly apply the calculation formula and set the rate of the Popular Savings Booklet at 4.30%, rounding it up to 4.50%. It could also slow down its decrease by maintaining the rate at 5% or even 5.50%. In any case, the LEP rate will not be able to fall below 3.50% before February 2025, even in the event of a sharp drop in inflation.
Be vigilant in the face of fluctuations in LEP rates in 2023
The year 2023 is likely to be eventful for holders of popular savings accounts, with possible rate adjustments in the coming months. It is therefore crucial to follow the evolution of economic data and anticipate the decisions of the Banque de France. Thus, savers will be able to adapt their strategy in order to best protect their savings and take advantage of the different investment opportunities that will present themselves to them throughout the year.
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