Tunisian central bank keeps key rate unchanged at 6.25%

The Central Bank of Tunisia (BCT) kept its key interest rate unchanged at 6.25% on Monday.

The bank had cut its key interest rate in October by 50 basis points, aiming to stimulate investment and boost faltering growth, the BCT said adding that It also cut the rate by 100 basis points in March in response to the coronavirus outbreak.

The BCT will finance the supplementary budget for 2020 by $1.1 billion by purchasing treasury bonds after an exceptional license from Parliament last week.

But the bank said in a statement that “it will be more vigilant to intervene, if necessary, to contain the potential effects of this measure, in particular on inflation and local currency.”

It urged speeding up the implementation of reforms aimed at curbing abuses and preventing further slippage in public finances in the future.

TunisianMonitorOnline

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