At its meeting on October 18, the Executive Board of the Central Bank of Tunisia (BCT) decided to keep the bank’s key interest rate unchanged at 8%.
The central bank’s latest projections point to a further gradual decline in inflation in 2023 and beyond.
Nevertheless, a number of inflationary risk factors are likely to remain active and could hinder the disinflationary process. These could stem, in particular, from an excessive rise in international prices and increased water tensions.
The Board stressed that, despite the resilience shown by the Tunisian economy in recent years, it is necessary to accelerate the process of implementing reforms, which is the only way to resume healthy, sustainable and inclusive growth capable of preserving the overall balance of the economy.
It considered that the current level of the policy rate would support a continued decline in inflation in the period ahead.
