Tunisia central bank held its key interest rate unchanged at 8% to curb high inflation, which hit a fresh four-decade high of 10.4% YoY in February, driven by a surge in food prices. The bank is monitoring core inflation, which remained high at 9.6% in February. While economic growth in 2022 exceeded expectations, the outlook for 2023 remains uncertain due to factors such as public finances, inflation acceleration, and water shortages. The bank anticipates inflation to ease in the second half of 2023 but remains at historically high levels.