Livret A interest rate cut expected

INTEREST rates on the tax-free Livret A account – currently 4% - will be cut on February 1.

While newspaper Le Monde claims rates will drop to 2.5%, the government has refused to confirm this.

Government spokesman Luc Chatel said there would be an adjustment but would not confirm if rates would drop to 2% (demanded by some economic experts worried about inflation) or 2.5%.

An official announcement will be made today, he said.

There are around 46 million Livret A account holders in France. Since January 1, a change in the law has allowed all banks in France to issue the account.