Saied stressed, in statements carried by the Tunisian presidential Facebook page, on Friday, during his meeting with Prime Minister Naglaa Boudin, Minister of Justice Leila Jaffal and Minister of Interior Tawfiq Charafeddine, “the need to provide for the needs of citizens, because the most important challenge is the economic and social challenge.”
He added, “The high prices, the loss of some basic materials, and the fabrication of crises and attempts that have become known to everyone cannot continue.”
The Tunisian president also emphasized “the application of the law to everyone equally,” and “the role that must be played by all state agencies, especially the role assigned to the judiciary, because without a fair judiciary, none of the Tunisian people’s goals of a decent life can be achieved.” Where justice prevails and all causes of poverty and injustice are eliminated.
Earlier on Friday, Tunisia’s central bank said it had raised the main interest rate by 75 basis points, from 7.25 percent to 8 percent, to curb inflation, in its third rate hike this year.
Tunisia’s inflation rate jumped to a record high of 9.8 percent in November, compared to 9.2 percent in October.
Economy Minister Samir Said said this week he expected the inflation rate to rise in 2023 to 10.5 percent, from about 8.3 percent in 2022.
The central bank said in a statement that it aims to “restrain the upward trend of inflation.”
The previous increase in interest rates was in October, when the bank raised them by 25 basis points, to 7.25 percent.
On Friday, the Central Bank also decided to raise the minimum interest rate on deposits to 7 percent.
Worrying indications
• The bank said it was very concerned about the risks surrounding the monetary and financial balance of Tunisia, and stressed the need to ensure access to external financing.
• According to the bank, the trade deficit is expected to reach more than 25 billion dinars ($7.99 billion) for the whole of 2022, marking a record level compared to 16.2 billion dinars in 2021.
• Tunisia, which is struggling to reform public finances, is seeking a loan from the International Monetary Fund in exchange for reforms, including spending and wage cuts and energy and food subsidies.
• The International Monetary Fund called on Tunisia to further tighten monetary policy to combat inflation.
• Tunisia expects to cut the fiscal deficit to 5.2 percent next year from 7.7 percent in 2022, driven by austerity measures, and has said it will cut subsidy spending by 26.4 percent to 8.8 billion dinars.
• The country seeks to increase tax revenues by 12.5 percent to 40 billion dinars, with an increase in tax rates for some professions such as lawyers, accountants and engineers to 19 percent from 13 percent.
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