Good news for the millions of French people who have a Livret A. Its rate will rise again next August, indicated this Wednesday the governor of the Banque de France François Villeroy de Galhau, responsible for transmitting to the government a proposal for the evolution of the remuneration of the preferred savings product of the French.

"There will be a new increase in the Livret A on August 1," said the governor on RTL, without specifying the extent of this increase, which will be the second since the beginning of the year.

Since February 1, it has been set at 1%, against a floor of 0.5% previously.

Under the influence of inflation

The Livret A rate is calculated twice a year by taking the average between, on the one hand, the average inflation rate of the last six months and, on the other hand, the average of the interbank rates, at which the banks are exchange money in the short term.

However, inflation has accelerated sharply since the start of the year, reaching 5.2% in May, according to INSEE.

The Banque de France is responsible for sending the Ministry of the Economy a proposal for changing the rate according to this formula.

Then it is up to the government to decide whether or not to give an extra boost to the result thus obtained.

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