Tunisia’s Central Bank announced Wednesday that it is keeping its key interest rate unchanged at 7.5%, maintaining the level set in March when it made its first rate cut in five years.
The decision comes as inflation continues to ease, offering some breathing room for policymakers. Consumer prices rose 5.4% in June, marking the lowest inflation rate in five years. The government forecasts an average inflation rate of 6.2% for 2025, down from 7% in 2024, signaling cautious optimism in tackling persistent price pressures.
Despite progress on inflation, Tunisia’s external accounts remain under strain. The trade deficit widened to $3.46 billion in the first half of 2025, up from $2.79 billion in the same period last year. As a result, the current account deficit expanded to 1.9% of GDP, compared to 1.2% a year earlier.
The Central Bank did not indicate any imminent changes to its monetary stance, but said it was closely monitoring economic indicators as Tunisia faces a delicate balance between stimulating growth and maintaining macroeconomic stability.
Analysts say that while slowing inflation opens the door to further monetary easing, external imbalances and ongoing fiscal pressures could limit policy flexibility in the months ahead.
TunisianMonitorOnline (STB)
