The resurgence of inflation due to the surge in oil prices amid the conflict in Iran could impact the preferred savings rate for the French. However, such a revision remains in the hands of the public authorities.
Will the war in the Middle East have an impact on the Livret A? With the return of inflation caused by the conflict between Iran and the alliance between Israel and the United States, the rate of French preferred savings could rise in the coming months. This outlook was anticipated by the Deputy Director of the Caisse des Dépôts (CDC) Antoine Saintoyant. With “inflation that tends to rise,” the CDC, which manages nearly 60% of the Livret A’s outstanding balance, “expects rather that the Livret A rate will rise” by the end of the year, he declared last week.
But this should not be before August 1st, one of the two dates for adjusting the remuneration rate of regulated savings accounts – along with February 1st. “The government has the option to deviate from this two-step fixing rule, but I don’t think that’s their primary intention today,” says economist Philippe Crevel, director of the Cercle de l’Épargne.
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