Decrease in BCE rates: what impact on yields of your investments?

The European Central Bank lowered its key rates again this time on Thursday, June 5. A blow for many investments, the yields of which may crumble. Overview of the solutions available to your savings.

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Already a year. On June 6, 2024, the European Central Bank (ECB) had initiated a first drop in its key rates, a decision that it had not taken since July 2022, in order to combat inflation. This Thursday, June 5, the Frankfurt institution therefore announced an eighth drop in twelve months, with a decline of 0.25 points for its three main guiding rates, past From 4.25% to 2% In the space of a year. At the key, a good deal for candidates for a real estate purchase, which should see the cost of their credit drop. Conversely, this is bad news for savers, who will be a drop in return on several of their savings products.

Savings booklets: a drop already acted

If you are one of the 57 million French people holding a booklet A, the drop in its rate is, alas, already acted for a few months. Given the withdrawal of inflation since January – and the level of interbank rates, also in decline – the remuneration of booklet A should pass From 2.4% to 1.7% On August 1, as well as that of the Sustainable and Solidarity Development Booklet (LDDS). The popular savings book (LEP) could drop him from 3.5% to 2.2%except intervention by the Banque de France and the government.

Even comes out for other short -term risk -free savings solutions, such as unregulated banking booklets, “super booklets” distributed online, or term accounts (CAT). The remuneration of these products, which is fixed freely by the banks, “Mechanically follows the ECB’s adjustment concerning its guiding rates. When they drop, the proposed remuneration also decreases ”summarizes Marc Tempelman, co-founder of Cashbee. Thus, the rates of super booklets should now be around 2% gross taxation, even if some, thanks to their boosted offers, could make a game with the booklet A by the end of the year.

EUROS Fund life insurance: no immediate impact

If you have swapped your book A for the Euros Fund for your life insurance, no cold sweats to have. The drop in the rates of the ECB has little impact on the long -term obligations of states and large companies in which insurers invest, and which make up the majority of euros. The bonds of the French State at 10 years are displayed for example still at 3.2%, far beyond 2% of the key rates of the ECB. In addition, it should be remembered that the bonds of an insurer is slowly renewed, which gives a certain stability to the performance distributed by Euros funds.

“During the rates of rates (between 2022 and 2024, NLDR), the insurers were able to replace each euro collected under very favorable conditions, with coupons (return of bonds, editor’s note) much higher than before. This allows them today to still offer good yields. As long as the rates do not remain very low, funds in euros still have a few great years ahead of them ”details Stéphane de Vaulx, director of development at Financière Meeschaert. This is without forgetting that some insurers still offer “boosted” rate offers to increase the return on your contract under certain conditions.

SCPI: A potential good news for shares holders

The drop in BCE rates should be good news for SCPI shares. Indeed, the drop in the cost of credits stimulates the request for real estate, which brings up their price: “The drop in rates is mechanically favorable to the valuation of real estate assets. But you have to remain vigilant according to the type of good ”warns Stéphane de Vaulx. If part of the savers may therefore see the value of their investment climbing, this will probably not be the case for those who had not bet on the right SCPI. Categories of real estate assets are likely to continue to suffer, as “Some offices located on the outskirts or too old and which require heavy work to remain attractive”, Press Stéphane de Vaulx. For investors who would like to take the plunge: “So you have to stay very selective in your choice of SCPI” confirms Marc Tempelmann.

Stock Exchange: a boost for European companies

Unlike risk -free investments, the scholarship tends rather to take advantage of BCE’s rate drops. This is true for individual borrowers is also for companies: with the drop in the cost of bank credits, they can more easily finance their activity and their future growth, which is favorable to their valuation on the stock market. “The drop in rates will continue to support companies in the euro zone, which are still under this point of value for their American counterparts”confirms Stéphane de Vaulx. In other words, European stock market indices still have a potential for increases, which lets hope for possible capital gains.