The Central Bank of Tunisia (BCT) has decided to keep its key interest rate unchanged at 7.00% during its meeting on October 7, 2026. This decision was made in the context of rising inflation, increased energy costs, and a widening current deficit. The BCT's decision aims to balance the need to control inflation with the need to support economic growth.
According to the BCT, inflation in Tunisia has reached 5.6% in September 2026, up from 5.4% in August. The increase is mainly attributed to the rising prices of fresh food products, which have gone up by 13.0% over the past year, compared to 11.7% in the previous month. However, the core inflation rate, which excludes fresh food and administered prices, has remained stable at 5.1% for the third consecutive month.
The country's energy bill has become a significant concern, with imports of energy products reaching 11.3 billion dinars by the end of August 2026, up from 8.8 billion dinars in the same period last year. As a result, the current deficit has widened to 4.694 billion dinars, representing 2.5% of the GDP during the first eight months of 2026, compared to 2.724 billion dinars and 1.6% of the GDP in the same period of 2025.
The BCT's decision to maintain the interest rate is also influenced by the country's economic growth, which slowed down to 2.3% in the second quarter of 2026, down from 2.6% in the previous quarter. The bank's council believes that the risks to inflation are still tilted to the upside and that close monitoring of prices, demand, banking liquidity, and external balances is necessary.
The bank's governor and council have stated that they will continue to monitor the situation closely and are prepared to take additional measures if necessary. The goal is to maintain financial stability while supporting economic growth. The council's decision is also aimed at maintaining confidence in the country's economy and financial system.
Tunisia's economic challenges are further complicated by a decline in its foreign exchange reserves, which have decreased to 23.7 billion dinars, equivalent to 92 days of imports as of October 6, down from 104 days in the same period last year. The BCT is working to manage these challenges while ensuring that the country's economic growth remains stable.
In conclusion, the Central Bank of Tunisia's decision to keep its interest rate unchanged at 7.00% reflects its cautious approach to managing the country's economic challenges. With rising inflation, a widening current deficit, and a decline in foreign exchange reserves, the bank is taking a careful approach to balancing the need to control inflation with the need to support economic growth.
Key points
- The Central Bank of Tunisia maintains its interest rate at 7.00% amid rising inflation and energy costs.
- Inflation in Tunisia reaches 5.6% in September 2026, driven by rising food prices.
- The country's energy bill and current deficit are major concerns for the economy.