The Central Bank of Tunisia decided to slash the key interest rate by 50 basis points at its meeting held on December 30, 2025, bringing it down to 7%, effective January 7, 2026. This marked the second reduction this year, amid sluggish growth and slowing inflation. Policymakers noted that economic growth slowed to 2.4% in the third quarter of 2025 from 3.2% in the previous quarter, reflecting weaker performance in key sectors, particularly energy, as well as the textile, clothing, and leather industries. As for consumer prices, the disinflation process continued in recent months, albeit at a relatively slow pace. Inflation is seen at 5.4% this year compared to 7% in 2024. The rates on the 24-hour lending and deposit facilities will be adjusted accordingly to 8% and 6%, respectively, in order to ensure consistency of the interest rate corridor and the effective transmission of monetary policy to the market. The Board also decided to lower the minimum savings remuneration rate to 6%.
