France's Livret A to rise to ~1.8% after ECB lifts deposit rate

On 11 June 2026 the European Central Bank increased its main deposit facility by 0.25 percentage point to 2.25 %. The move is intended to curb inflation, which remained above 2 % in the euro area.

Following the ECB hike, French authorities expect the regulated savings product Livret A to be revised from 1.5 % to around 1.8 % on 1 August 2026. The rate is set by a formula that averages inflation (excluding tobacco) and the €STR over six months. Although the nominal increase adds a few euros of interest per year for savers, it still lags behind the 2.4 % inflation recorded in May 2026, leaving a negative real return of about –0.6 %.

The higher rate has not halted withdrawals: in April 2026 French households pulled €1.28 billion from Livret A, marking the fourth consecutive month of net outflows despite the product’s tax‑free status. Overall balances remain large (≈€445 billion), but the shift reflects growing consumer concern over the economic outlook.