Central Bank of Tunisia raises key interest rate to 7%

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The Executive Board of the Central Bank of Tunisia (BCT) decided to raise the key interest rate of the BCT by 75 basis points, 7.0 pc.

The decision followed an assessment of the risks surrounding the inflation dynamics and the external trade balance in the period ahead, the BCT said in a statement Tuesday.

Raising the BCT's key rate by 75 basis points to 7.0 pc would result in an increase in the deposit and marginal lending facility rates to 6.0pc and 8.0pc respectively, it added."Through this action, the Board aims to counter inflationary pressures looming on the horizon and to avoid an acceleration of inflation and a widening of the external imbalance."

In addition, it was decided to raise the minimum rate of return on savings by 100 basis points, to 6 pc.

The Executive Board of the BCT had lowered the key rate by 50 basis points to 6.25 pc on September 30, 2020.