Cairo – Tunisia’s Central Bank decided to raise the key interest rate earlier this week, from 6.25% to 7% to combat high inflation. The Executive Board of the bank said it assessed the local economic and financial landscape and the latest data show a rapid increase in inflation rates around the world tied with a slow global growth recovery driven by the crisis ushered in by the Russia-Ukraine war.
According to the Executive Board of the Central Bank of Tunisia, inflation rose to 7.5% in April, from 7.2% in March and 5% in April 2021. Last month, Tunisia posted the highest inflation rate since March 2018.
The Tunisian Central Bank added that prices are increasing continuously, with a nearly widespread growth in international raw material prices and disturbances in food supply chains, which in turn aggravates the crisis. The institution said that many central banks around the world are tightening their monetary policies.
Translated by Ahmed El Nagari & Guilherme Miranda
