Key facts
- Tunisia's central bank kept its key interest rate unchanged at 7%.
- The bank cited exogenous upside risks to domestic inflation.
- It pledged to remain vigilant against inflation pressures.
- Tunisia's current account deficit narrowed to 1.5% of GDP in Jan-Apr.
The Central Bank of Tunisia (BCT) has decided to keep its key interest rate steady at 7%. The decision comes amid concerns over exogenous upside risks to domestic inflation. The central bank stated its commitment to remaining vigilant in monitoring and addressing inflationary pressures. In a separate development, Tunisia's current account deficit narrowed to 1.5% of its Gross Domestic Product (GDP) during the period of January to April. This improvement is attributed to strong inflows from services and remittances, which helped to offset a widening trade deficit.