The Governor of the Banque de France was the guest of “8:30 a.m. franceinfo”, Tuesday July 11, 2023.
François Villeroy de Galhau, Governor of the Banque de France, was the guest of 8:30 a.m. franceinfo, Tuesday July 11, 2023. Inflation, tax cuts, popular savings book … He answered questions from Lorrain Sénéchal and Agathe Lambret .
Taxes: no new “unfunded” cuts
“The intention that has been expressed to defer certain tax cuts seems wise to me, on the part of the Minister of Economy and Finance”, said Francois Villeroy de Galhau. THE “pace” future tax cuts in France will depend on the level of growth expected for the country, which will be revised in September for the years 2023 and 2024, Bruno Le Maire said on Sunday.
“We can’t afford today to make new unfunded tax cuts, any more than we can afford to do a lot of additional spending”, continues François Villeroy de Galhau. He points out that“we already have the level of spending in France, compared to the size of our economy, the highest in Europe, and even the highest of all the developed economies in the world”.
Food inflation: the Banque de France hopes to see “a deceleration”
According to François Villeroy de Galhau’s forecasts, core inflation, which is more representative as it is corrected for highly volatile energy and food prices, “will continue to fall and will return to around 2% by 2025”. Furthermore, the Banque de France hopes to see “a deceleration” food prices which for the moment “keep going way too fast”.
“10 million French people” have not opened a popular savings account
“There are still almost 10 million French people who could have access” to the popular savings account which is “highly paid and who have not opened one”added François Villeroy de Galhau. “It is the flagship product of popular savings”, remunerated at 6.1% subject to means, and a little less known than the livret A. The rate of the livret A, currently at 3%, must also increase in August, indicated the governor of the Banque de France without revealing of numbers.
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