Tunisia's central bank keeps interest rate steady at 8 percent
Date
12/29/2024 2:19:41 AM
(MENAFN) Tunisia's central bank decided to keep its benchmark interest rate steady at 8 percent, stating that current borrowing costs align with inflation expectations. In a statement released following its board meeting, the bank noted that inflation is expected to average 7 percent this year before decreasing to 6.2 percent in 2025. This decision reflects a broader effort to maintain economic stability while addressing inflationary pressures, according to Reuters.
The inflation rate for household consumption in Tunisia experienced a slight decline, dropping to 6.6 percent in November from 6.7 percent in October. This decrease, as reported in the household consumer price index for November 2024 issued by the National Institute of Statistics, is primarily attributed to a slowdown in food price increases. Food prices rose by 8.5 percent in November, compared to a higher increase of 9.3 percent in October, signaling some easing in cost pressures on consumers.
Remittances from Tunisians living abroad have shown notable growth, increasing by 4.6 percent to reach 7.6 billion dinars (approximately USD2.3 billion) between January and December 10. This surpasses the rise in tourism revenues, which grew by 7.2 percent to 7.05 billion dinars (around USD2.2 billion) during the same period. These two revenue streams have played a crucial role in supporting the country’s economy.
The combined contributions of remittances and tourism revenues have helped Tunisia meet its external debt obligations, estimated at about 13.5 billion dinars for the year. These inflows have also bolstered the country’s net foreign currency reserves, which currently stand at 25.17 billion dinars, sufficient to cover 113 days of imports. This financial stability remains essential for sustaining Tunisia’s economic resilience.
MENAFN29122024000045015839ID1109038642
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.