Surprise Rate Cut Highlights Growth Worries

In a surprise move that illustrates the depth of concern over the impact of the global economic crisis, Tunisia's central bank has cut its headline interest rate by 75 basis points (bps) to 4.50%. Given the size of interest rate cuts seen elsewhere around the globe, the move is hardly radical, except when you consider that the previous rate of 5.25% had been in place for more than three years. In light of the bank's previous policy inertia, we are not forecasting further rate cuts at this stage, although they can not be ruled out if the global economic outlook

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