While the slowdown in inflation is confirmed, with a figure of 2.2% in April over one year in France, the European Central Bank (ECB) forecasts, for the month of June, a change in its interest rates . If the markets anticipate even up to three rate cuts this year, these decisions could represent very bad news for the French. While there are many questions about this progress, we are taking stock for you of everything that will change in June.
It’s almost official: a first rate cut from the European Central Bank is planned for June 6. Enough to cause a lot of concern for the French, who will see this improvement in investments gradually fade away. Among the major booklets, Booklet A could, for its part, evolve in a favorable manner. It is, in fact, very likely that this is an exceptional case since its calculation formula is linked to the evolution of inflation excluding tobacco and the €STR, an index which reflects the rates of interest on euro loans taken out in the short term by euro zone banks.
While the Livret A should also follow this decline, the government chose, last summer, to freeze its rate at 3% until January 2025. As a result, the 55 million holders of a Livret They will be able to breathe. At 3%, the Livret A rate is, in fact, higher than inflation. Remaining the preferred investment of the French, the Livret A will continue to help them gain purchasing power. Excellent news since he had not placed his return on price developments since 2020.
At the LEP level, its rate is now set at 5%, but it should increase to 2.5% from August 1. His remuneration follows, in fact, the evolution of prices during the semester preceding the revision of his rate. Since it cannot, however, be lower than the Livret A rate, it could, according to economist Philippe Crevel met by MoneyVox, “be between 3.5% and 4%”.
As for euro funds, the year 2023 noted a rebound in the remuneration of euro life insurance funds going from 1.9% in 2022 to 2.6%. With an influx of expected liquidity, insurers will be able to redress the return on assets and “attribute for 2024 an average remuneration at least equal to that of 2023, or even a little higher up to 2.8%”, as Gildas Robert explains. , executive director of Accenture.
Regarding bank accounts, 225 billion euros are placed there for the French. They remain poorly remunerated savings, despite repeated increases by the ECB in recent years. Remember that their gross remuneration amounted to 0.91% in March and that the ECB’s rate cut should have a limited impact.
For ordinary savings accounts, several establishments are trying boosted rates with a rate of 5% for three months at Fortuneo and Monabanq. At Distingo Bank, which offers 3% gross, it is the ECB directives which will give the path to follow, but the Distingo savings account should remain at 3% by January 2025.