The Central Bank of Tunisia (BCT) announced a significant cut to its main interest rate on Tuesday. The bank’s Executive Board lowered the key rate by 50 basis points to 7%, effective January 7, 2026.
The decision, detailed in an official statement, aligns with a broader monetary easing strategy. The rates for the 24-hour lending and deposit facilities will be adjusted to 8% and 6%, respectively. The Board also reduced the minimum interest rate on savings to 6%.
The rate cut comes against a backdrop of cooling economic growth. Data cited by the BCT shows GDP expansion slowed to 2.4% in the third quarter of 2025, down from 3.2% in the previous quarter. Excluding the volatile agricultural sector, growth was a modest 1.5%, with underperformance noted in the energy and textile industries.
While inflation has been on a “disinflationary” path, the process remains slow. The annual inflation rate held steady at 4.9% in November 2025. The BCT noted a sharp slowdown in state-controlled prices but a concerning gradual rise in core inflation, which excludes fresh food and administered prices.
External pressures persist. The trade deficit widened considerably in the first eleven months of 2025, driven by a surge in imports. Robust remittances and tourism earnings only partially offset this, leaving a current account deficit of 2.4% of GDP. Net foreign exchange reserves dipped slightly to 108 days of import cover.
Internationally, the BCT pointed to a “notably resilient” global economy in 2025, supported by easing commodity prices and looser financial conditions, despite protectionist and geopolitical headwinds.
Citing the observed economic developments and an expected 2025 average inflation of 5.4%—down from 7% in 2024—the Board justified its stimulative action. The bank pledged to “continue to closely monitor inflation prospects and risks” and stands ready to adjust policy further if needed.
TunisianMonitorOnline (NejiMed)
