The Central Bank of Tunisia kept its key interest rate unchanged at 7% at its February 11, 2026 meeting, following a 50 bps cut in December. The decision reflects easing inflation and a cautious global backdrop, as major central banks maintained a pause amid trade and commodity price uncertainties. Annual inflation slowed to 4.8% in January, the lowest in six years, from 4.9% previously. The decline was driven by slower growth in regulated prices and a moderation in fresh food costs due to improved supply, while core inflation edged up to 4.9% on base effects linked to olive oil prices. Externally, the current account deficit widened to 2.5% of GDP in 2025 from 1.6% a year earlier, mainly due to a larger trade gap. Meanwhile, foreign reserves rose to 25.8 billion dinars, covering 109 days of imports, up from 102 days a year earlier. The Board reiterated its commitment to supporting disinflation and anchoring inflation expectations.
