The economist, Ezzeddine Saïdane, declared this Wednesday, May 18, that “the increase in the key interest rate is a step in the wrong direction, and will further complicate the economic and financial situation in Tunisia”.
In an interview with Jawhara, he indicated that the only beneficiary of this decision is the Tunisian banks.
Raising the key interest rate will, however, have a negative impact on citizens and economic enterprises, he warned.
“It will impact borrowers; those who will have to pay larger installments for loans contracted with banks, whether they are old or new loans,” added the expert.
The central bank got it wrong again, faced with a misunderstanding of monetary policy in Tunisia. The solution lies in economic and financial reforms and the revision of the mode of State expenditure, he further underlined.
He added that the Central Bank was playing politics, and had further aggravated the situation.
As a reminder, the Central Bank of Tunisia (BCT) has decided to raise its key interest rate by 75 points, bringing it to 7.0%, in order to counter inflationary tensions, and avoid an acceleration of inflation and an accentuation of the external imbalance.
This decision would result in an increase in the rates of the deposit and marginal lending facilities to 6.0% and 8.0% respectively, the Issuing Institution said, at the end of the meeting yesterday, of its Board administration.
