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UGTT refuses BCT Executive Board’s decision to increase key interest rate



UGTT refuses BCT Executive Board’s decision to increase key interest rate

The Tunisian General Labour Union (UGTT) expressed in a statement Monday, its refusal of the decision taken by the Executive Board of the Central Bank of Tunisia on June 13 to increase the Bank’s key interest rate from 5.75pc to 6.75pc.

The UGTT believes that the increase in the policy rate by 100 basis points, a decision taken under the pretext of curbing inflation which reached 7.7 pc at the end of May, has a negative impact on investment and development and could worsen the economic crisis and accentuate the deterioration of the purchasing power of employees.

The UGTT categorically refuses such policies detrimental to the poor and middle classes, the statement said.

The BCT has resorted to the easiest solution, facing the government's inability to fight against parallel trade, smuggling and taking necessary measures to counter the budget deficit and streamline imports, the same source said.

The labour organisation called on the government to make the necessary efforts to fight tax evasion and smuggling and strengthen the control of distribution channels in parallel with better coordination with the BCT to implement a fiscal and monetary policy to boost investment.

The BCT had indicated in a statement that the decision to raise the key rate would make it possible to cope with the upward trend in inflation, which reached 7.1% in February this year, compared to 4.6% in the same month of 2017.

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