France’s Livret A Rate Expected to Rise to About 1.8% in July

Overview

• Olivier Sichel of the Caisse des Dépôts said on Thursday that, if the statutory formula is applied, the Livret A rate would move from 1.5% to roughly 1.8% in July and the final decision rests with the Economy minister after advice from the Banque de France governor.
• The formula that sets the rate is a simple arithmetic average of year‑on‑year inflation and short‑term interest rates, so the May inflation reading of 2.4% pushed the calculation higher.
• Households have large financial savings overall but have been withdrawing from Livret A for several months; April saw a €1.28 billion outflow, leaving about €445.2 billion across roughly 58 million accounts.
• Sichel sought to reassure savers that the Caisse des Dépôts manages these deposits separately and that the funds are not tax revenue to be used to cover public debt.
• France’s total financial savings remain historically high at €6,590.5 billion at end‑2025, a stock that officials say both reflects public caution about the economy and represents potential investment capacity.