Tunis - The Executive Board of the Central Bank of Tunisia (BCT) decided at its meeting on Tuesday to cut the key interest rate by 50 basis points, bringing it down to 7%, effective January 7, 2026.

The rates on the 24-hour lending and deposit facilities will be adjusted accordingly to 8% and 6% respectively, in order to ensure consistency of the interest rate corridor and the effective transmission of monetary policy to the market, according to a statement from the BCT.

The Board also decided to lower the minimum interest rate on savings to 6%.

Economic growth stood at 2.4% in the third quarter of 2025, compared with 3.2% in the previous quarter. Excluding agriculture, growth was limited to 1.5%, down from 2.6% in the previous quarter, it was indicated in the statement.

This slowdown reflects the underperformance of key sectors, notably energy, as well as the textile, clothing, and leather industries.

Regarding the external sector, the trade deficit (FOB–CIF) widened to TND 20.168 billion over the first eleven months of 2025, compared with TND 16.758 billion over the same period a year earlier, driven by a marked increase in imports.

Strong worker remittances and tourism revenues helped contain the current account deficit at TND 4.188 billion, representing 2.4% of GDP at the end of November 2025, compared with TND 1.841 billion and 1.2% of GDP one year earlier.

According to the statement, net foreign exchange reserves stood at TND 25.5 billion, covering 108 days of imports, as of 29 December 2025, compared with TND 25.8 billion and 116 days of imports a year earlier.

Meanwhile, the dinar continued to show resilience on the foreign exchange market, appreciating against the US dollar while recording a moderate adjustment against the euro.

As for consumer prices, the disinflation process continued in recent months, albeit at a relatively slow pace. The inflation rate remained at 4.9% in November 2025.

This development mainly reflects a sharp slowdown in inflation for administered prices, in a context marked by the continued freeze of most of the concerned goods and services, combined with a moderate easing in fresh food inflation, which declined to 11.1% in November 2025 from 12% the previous month.

By contrast, core inflation, excluding fresh food and administered prices, continued its gradual rise, reaching 4.7% in November 2025, compared with 4.5% a month earlier.

Based on observed developments, inflation is expected to average 5.4% for the whole of 2025, compared with 7% in 2024, according to the statement.

In light of all these developments, the Executive Board decided to lower the key interest rate by 50 basis points to 7%.

The Board stated that it will continue to closely monitor inflation prospects and risks to macroeconomic stability and remains ready to adjust the monetary policy stance as appropriate.

At the international level, the global economy showed notable resilience in 2025 in the face of various shocks, particularly those stemming from tighter protectionist policies and persistent geopolitical tensions.

This resilience was supported by a marked easing of price pressures on international commodity markets, especially energy, as well as a significant loosening of global financial conditions.

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