PARIS (MNI) – French Finance Minister Francois Baroin said Thursday
that the yield on the Livret A savings deposits held by the vast
majority of the French people will be held stable next month at 2.25%,
following the advice of Bank of France Governor Christian Noyer to avoid
“excessive volatility”.
With domestic inflation excluding tobacco running at 2.4% in
December, the Livret yield could have been hiked by 25 basis points. But
Noyer hinted last week that he might weigh in against the move if the
ECB’s outlook for a slowdown in inflation were confirmed.
The Livret A is a state guaranteed tax-free saving account. Its
wide popularity has increased recently with the deterioration of bond
yields and stock prices.
[TOPICS: M$F$$$,MGX$$$,M$X$$$]
