Tunisia’s central bank has kept the key interest rate unchanged at 8%, it said on Friday, adding it was watching for any potential repercussions that may result from a government request for direct funding from the bank.
The government requested exceptional direct funding from the central bank worth 7 billion dinars ($2.25 billion) to fill a deficit in this year’s budget, given the scarcity of external finance, three lawmakers told Reuters on Tuesday.
Economists warned that the move could lead to rising inflation and weigh on the value of Tunisia’s currency.