Tunisia leaves rates unchanged despite high inflation

The Central Bank of Tunisia

The Central Bank of Tunisia left the key policy rate unchanged at 5.75% at the last policy meeting on May 28, although inflation has remained high since the last hike in March.

The board of the central bank increased interest rates from 5% in early March to tackle the 7.1% year-on-year inflation recorded in February, as foreign exchange reserves fell to cover only 78 days of imports.

However, the tighter policy has failed so far to reduce price pressures, as inflation stood at 7.7% in April

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