Tunisia’s central bank maintains key rate unchanged at 4.5%

By bne IntelliNews May 1, 2014

Tunisia's central bank (CBT) left the benchmark interest rate unchanged at 4.5%, underscoring some negative economic trends, including falling industrial output and weakening tourism activity. The CBT, however, praised the strong agriculture output amid favourable weather conditions and strong harvest, which will help curb inflationary pressures. The latter are usually fuelled by volatile fresh produce prices.

The central bank warned of the widening current account deficit, which reached 2.7% of the forecast GDP in the first three months of the year compared with 1.8% of GDP during the same period a year earlier. The current account balance was pressured by an expanding trade gap given high energy and food imports. Such negative parameters prompted the central bank to tap into its FX reserves. The latter covered 97 days of imports as of April 29, down from 102 days of imports at end-April 2013.

As to inflation, the CBT underscored that inflationary pressures have eased in March, when CPI inflation cooled to 5.0% y/y from 5.5% the month before due to cooling core inflation, excluding fresh produce prices.

The central bank also noted the rising liquidity needs of the banking sector in April, boosting the central bank’s daily intervention on the money market to an average of TND 5.280mn in April, up from TND 4.688mn in March.

The inter-bank interest rates inched up to 4.73% in April from 4.72% in the month before, the CBT noted.

The Tunisian dinar has appreciated by 3.1% and 2.7% against the USD and the EUR so far in 2014 up to April 28, the central bank said. 

Related Articles

Egypt could return to emergency rule amidst deadly bomb explosions

A spate of explosions in Egypt over the long weekend marking the birthday of Prophet Mohamed culminated in the detonation of a bomb at a church attached to the Coptic Christian Cathedral that ... more

Egypt’s inflation spikes post November currency floatation, rate hike expected

Egypt’s annual inflation rate spiked in November to hit its highest levels since July 2008, reflecting the effects of the general rise in price levels of goods since the Egyptian pound’s ... more

Samba said to take Saudi Oger to court, torpedoing talks on standstill deal on $3.5bn debts

Saudi Arabia’s Samba Financial Group has taken Saudi Oger to court, torpedoing efforts by the latter to negotiate a standstill agreement on at least SAR13bn ($3.5bn) of debt, which could have major ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss