The Banque Centrale de Tunisie raised its key interest rate to 5.75% from 5% amid rising inflation.
Tunisia's annual inflation rate reached 7.1% in February compared with 4.6% a year ago. This reading was the highest in nearly 28 years, according to a Reuters report that cited official data.
The central bank said rising global commodity prices may also intensify inflationary pressures, adding that the rate hike will help consumers' purchasing power and support growth.
