To combat inflation, the Tunisian Central Bank increased the interest rate by 25 basis points on Wednesday. This was the second hike in five months.
From 8.6% in August to a record 9.1% in September, inflation in the North African nation reached.
The central bank recently raised the benchmark interest rate by 75 basis points in May.
In exchange for difficult changes including cutting expenditure and energy and food subsidies, Tunisia is asking the International Monetary Fund for a loan as it struggles to repair its severely damaged public finances.
In order to combat Tunisia’s record inflation rates, the International Monetary Fund has urged for additional monetary tightening.
The possibility exists for the Tunisian Central Bank to increase interest rates once more.
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