Tunisia Raises Rates to Rein In Highest Inflation in 30 Years

Tunisia’s central bank surprised markets by raising interest rates, as it warned that the highest inflation in more than three decades may spiral out of control and further erode the country’s fragile finances.

Banque de Tunisie on Wednesday announced a 25 basis-point increase to both its benchmark lending rate and the savings rate, taking them to 7.25% and 6.25% respectively. It was the bank’s first monetary-policy decision since early June, when it opted to keep rates on hold.