The Executive Board of the Central Bank of Tunisia (BCT) met on March 22 to review recent economic and financial developments and the medium-term outlook.
The Board reiterated to raise the required external financing in order to guarantee public finances balances, boost policy mix and undertake structural reforms intended to monitoring the twin deficits and giving impetus to economic activity.
With regard to inflation, the BCT Board notes that it continued its rise at a sustained pace, reaching 10.4% in February 2023 against 10.2% in the previous month and 7% in the same month of the previous year, bearing the mark, mainly, of soaring fresh foodstuff prices.
The Board said it is following very closely core inflation, “inflation excluding fresh foodstuff and controlled-priced products,” which proved to be rigid. In fact, it amounted to 9.6% in February 2023 against 9.5% in the previous month and 6.3% a year before.
“While remaining surrounded by strong uncertainties, inflation outlook foreshadows a certain easing over the second half of 2023 but would remain at historically high levels,” the BCT said.
It stressed that it stands ready to take the required measures to bring inflation back to sustainable levels. In fine, it decided to keep the Bank of Tunisia’s key interest rate unchanged at 8%.