Booklet A: Bank of France proposes to reduce the rate at the bottom … – Les Echos

Booklet A: Bank of France proposes to reduce the rate at the bottom … – Les Echos

+ VIDEO Following the publication of inflation figures in December, the Bank of France proposes to lower the compensation Booklet A 0.75% against 1% currently. But it is the government that has to decide

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The decision was expected since Wednesday morning 8:45, after the publication of the price index for December. Thursday morning on Europe 1, Christian Noyer, Governor of the Bank of France proposed that the remuneration of the investment is reduced to 0.75% from February

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The Bank of France offers a booklet A to 0.75% by Europe1fr

This proposed decrease of 0.25 points, which is less than the technically low inflation should have resulted. Christian Noyer has chosen, as it has the possibility of not strictly follow the formula for determining the performance of the preferred placement of the French, which gave 0.25%. “I want to take into account the psychology of investors,” said the Governor for his decision

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Life Insurance: lower desired rates

While making public its proposal for a new Booklet A compensation from 1 ^st February, Christian Noyer has again hinted that he also wanted to lower rates of life insurance.
And felt that the remuneration of investment that dethroned Booklet At the heart of the French was too high in relation to the interest rates.

A proposal that the government can not follow

This proposal still needs compensation be accepted and followed by the executive. What is not so simple a political point of view. Indeed, following the advice of the Bank of France would lead to drive a highly symbolic level of remuneration, since from its creation in 1818 the rate of this investment has never been below 1%.

So there is a possibility that eventually the rate be maintained at 1% over the coming months. However, and in advance, the Governor of the Bank of France has warned that such a decision would likely have adverse consequences. “I propose to 0.75% with the hope that the government follow me” he in fact stated stressing that this proposal does include a “major boost”.

He added that “0.75% is a good balance” and that this level of remuneration “is a gain purchasing power of savings rarely seen,” given the current inflation is 0%

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In 2014 already, while the price index (excluding tobacco) increased by only 0.3% year on year in June, the issuing institution had proposed a 0.75% rate of pay while the strict application of the formula implied a rate of 0.50%.

to “preserve the compensation of the savings of French,” the government had decided a much smaller decline. He then set the rate of the Livret A 1% against 1.25% previously

Macron Act. Shy certain points

Asked about Macron law, Christian Noyer said that it “can have a real effect on growth” and that “there should be a broad national unity”.
But if that text is “an important step in the right direction on certain bridges, this law is shy.”