According to Francois Villeroy de Galhau, the Governor of Banque de France Francois Villeroy de Gallau, the passbook A rate is one of the most popular investments for the French.
The Livret A rate is calculated by a formula that includes both the average interbank interest rate (EURSTR), and the average inflation rate over the past six months.
Inflation in France increased to 5.2% in May. This is more than the 5% mark since September 1985. According to INSEE it is highly probable that this increase will be passed on to the livret A.
The government had already raised the Livret A rate from 0.5 to 1.1% on February 1st.
Francois Villeroy de Galhau, according to Les Echos, explained that the specific proposal for increasing the Banque de France Livret A booklet will be based upon the final June inflation figures, which were known in mid-July.
