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France cuts rate on popular Livret A savings accounts

BY Reuters | ECONOMIC | 07/16/25 09:07 AM EDT

PARIS, July 16 (Reuters) - France's finance ministry said on Wednesday it was cutting the regulated interest rate on popular, tax-free savings accounts known as Livret A to 1.7% from 2.4 from August 1.

French savers had over 600 billion euros ($696.6 billion) in Livret A accounts and a similarly regulated LDDS accounts at the beginning of the year, according to the Caisse des Depots, a public sector finance body.

The finance ministry sets the rate on the accounts on recommendation from the central bank according to a formula based in part on inflation and short-term interest rates, aiming to give savers a slight real return over inflation.

The latest cut was widely expected in light of the decline in inflation over the last year. ($1 = 0.8613 euros) (Reporting by Leigh Thomas, Editing by Dominique Vidalon)

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