Ridha Chkoundali, professor of economics at the University of Tunisia, said he was “surprised” by the Central Bank of Tunisia’s (BCT) decision to leave its key interest rate unchanged at 8%.
Speaking on Express FM on Monday, December 30, he recalled that the BCT had expressed its intention to contribute to increasing the growth rate.
With regard to inflation, he believed that its rise was mainly due to obstacles to private investment, such as high taxation, the complexity of administrative procedures and the unfavorable investment climate.
He also said that private consumption accounted for more than 70% of Tunisia’s GDP, stressing that the main source of growth in Tunisia was domestic demand.
Believing that “the government is the cause of this inflation”, Chkoundali pointed out that the BCT “discourages investment through a policy of high interest rates and a prudent monetary approach”.
