IMF welcomes Tunisia’s tougher monetary policy

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The Central Bank of Tunisia’s recent sharp tightening of monetary policy was welcomed by the International Monetary Fund in its most recent review under the Extended Fund Facility.

The central bank raised rates by 100 basis points to 7.75% on February 19. The IMF executive board said further rate hikes might still be warranted this year if inflation projections for December 2019 exceed the central bank’s target.

Year-on-year inflation is currently at 7%, up from 6.9% in May. The rate is down,

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