At the end of March, the Central Bank of Tunisia decided to reduce the policy interest rate by 100 basis points, bringing it down from 7.75% to 6.75%.
Similarly, the Money Market Rate (TMM) followed the downward trend of the policy rate, dropping from 7.84% in February to 7.35% in March and then to 6.8% in April.
This reduction, deemed insufficient by tunisian economic experts, will provide a slight reprieve to tunisian businesses as they struggle with the substantial interest rates currently charged by local banks.
However, to better stimulate the economy, the policy interest rate should ideally not exceed 5%. This would encourage investors to withdraw their funds from banks and channel them into projects that generate employment and add value.