Overview
- The Banque de France will recalculate the regulated savings rate on Thursday, January 15, with the Economy Ministry expected to validate the new level the same day.
- The rate, currently 1.7%, is widely projected to drop to about 1.4% based on the statutory formula, according to IESEG economist Éric Dor.
- The formula combines an ECB-linked component with second-half 2025 inflation excluding tobacco, and the marked slowdown in prices is pushing the yield lower.
- Governor François Villeroy de Galhau says he can deviate from the formula if needed and has pledged the return will remain significantly above inflation, now around 0.8%.
- A lower rate would reduce borrowing costs for social-housing lenders and benefit banks, while many savers have shifted toward life-insurance products with steadier or rising payouts.