Tunisia's Central Bank Keeps Interest Rate Unchanged
The Central Bank of Tunisia (BCT) has decided to maintain its benchmark interest rate at 7%. The decision was made during the bank's administrative council meeting on June 3, 2026, despite a rise in inflation in April.
Economic Indicators Show Improvement
Several economic indicators suggest a gradual improvement in the country's economic situation. The economy grew by 2.6% in the first quarter of 2026, compared to 1.6% in the same period last year, driven by the services sector, agriculture, and certain industrial activities. The external situation has also improved, with the current account deficit decreasing to 2.731 billion dinars by the end of April, while foreign exchange reserves reached 25.5 billion dinars, equivalent to 104 days of imports, up from 98 days a year earlier.
Inflation Concerns Persist
However, the BCT remains cautious about price developments. After several months of slowdown, inflation rose to 5.5% in April 2026, compared to 5% in March. This increase is mainly due to the rise in prices of fresh food products, which have increased by 13.3% over the past year. The Central Bank also notes that international tensions continue to fuel inflationary risks. Geopolitical conflicts, particularly in the Middle East, are putting pressure on global energy and commodity markets, while inflation remains high in several major economies.
Prudent Monetary Policy
In this context, the institution believes it is preferable to maintain a cautious monetary policy to preserve price stability and avoid a new surge in inflation. By keeping the interest rate unchanged, the BCT aims to balance the need to support economic growth with the need to control inflation and maintain financial stability.
