Tunis — At a recent parliamentary hearing, Central Bank of Tunisia (BCT) Governor Marouane El Abassi described a decision to raise the key interest rate by 100 basis points, from 6.75% to 7.75%, as “difficult but necessary.” The increase was announced in a BCT press release after Executive Board meetings held Feb. 16 and 19.
Abassi claimed at the hearing on Feb. 25 that the BCT had raised rates to curb inflationary pressures and stabilize liquidity to support the banking system. The BCT Executive Board had said as much in its statement. It is the third interest rate hike in 12 months. On March 5, 2018, the BCT had raised the interest rate by 75 basis points, from 5% to 5.75%. On June 20, 2018, the bank raised it again, by 100 points, to 6.75%.
