The Central Bank of Tunisia (BCT) said on Wednesday it kept its key interest rate unchanged at 5.75 %.
The BCT board said that the persistence of inflationary pressures – inflation stood at 7.7% at the end of April 2018 year-on-year – noting that the pace of price change is likely to negatively impact the economic recovery. This requires precise monitoring of the causes of inflation, better co-ordination of economic policies and implementation of appropriate mechanisms to mitigate its effects.
In March, the central bank raised the rate to 5.75 percent from 5.00 percent to tackle the inflation that had hit record levels.
The International Monetary Fund said last month that anchoring inflation expectations through additional rate increases would be crucial if price pressures did not moderate quickly.