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The bank is trying to control inflation through this promotion, which has not fallen below 7% for a long time.
This promotion comes just weeks after the government agreed to increase public service salaries between the government and the Tunisian General Labor Union.
The interest rate increase aims to reduce borrowing from banks and thus avoid high inflation. One of the main functions of any central bank is to control inflation.
Lower lending will reduce investment in the country and affect consumption, which is one of the engines of growth.
The increase in interest rates also results in an increase in the value of premiums paid by any party with outstanding debt obligations.
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