2023-11-17 06:08:26
Inflation is falling… and inflation affects the LEP
The LEP rate is closely linked to the evolution of inflation. With inflation falling, going from 4.8% in August and September 2023 to 3.9% in October 2023, the LEP rate, revised semi-annually, is directly impacted.
Unlike the Livret A and the LDDS, whose rates are frozen at 3% following a decision by the executive, the LEP remains sensitive to variations in inflation. This specificity makes it particularly attractive in times of high inflation, but also vulnerable when inflation falls.
What will the LEP rate be in 2024?
The planned drop in the LEP rate from 6% to 4.4% represents a significant reduction in the return on the popular savings account for savers. This change will directly affect the 10.1 million LEP holders. And potentially those who will open one subsequently, the Banque de France still wanting to develop this tax-free savings product from which not all eligible households in France benefit.
Faced with this decline announced interest rate, savers could reconsider their savings strategies. Some might seek more lucrative alternatives, while others might remain loyal to LEP, despite its reduced attractiveness. If the LEP sees its interest rate drop to 4.4%, however, it will remain more attractive than its two cousins, the Livret A and the Livret de Développement Durable et Solidaire (LDDS), whose rate remains fixed at 3% .
Will the Banque de France save the LEP interest rate?
Although the decline to 4.4% seems likely, alternative scenarios could present themselves. The Banque de France could recommend not strictly applying the calculation formula, due to exceptional circumstances, to maintain a higher rate. But it will be up to the government to decide.
The decisions of the Banque de France and the government will be decisive. They could choose to soften the rate cut to support popular savings, an approach already observed in the past.
We will have to wait until January 2024, when the final inflation for December 2023, and therefore the annual inflation, will be known, to know exactly what the future of the LEP interest rate will be from February 1, 2024. But with the proven slowdown in inflation, there is little chance that the 6% rate will be retained.
1700205790
#inevitable #drop #interest #rate