Tunisia to end central bank independence

Tunisian lawmakers look set to initiate a law that would remove the exclusivity of the central bank in setting the benchmark interest rate, essentially ending the bank’s monetary policy independence. The bill suggests that the central bank should only set the interest rate after the approval of the government. The short-termism of the government in dealing with the ongoing economic issues has contrasted with the concern of the central bank in ensuring price stability. President Kais Saied has sometimes criticized the central bank which did not agree with his plan to directly fund the state budget.