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The central bank of Tunisia left its key interest rate steady at 8% on December 11th 2023, keeping borrowing costs at their highest level since at least 2006, saying the current stance will contribute to an ongoing deceleration of inflation over the period ahead. Tunisia’s annual inflation rate slowed for the third consecutive month to 8.3% in November, easing from 8.6% in October. Meanwhile, policymakers noted that domestic economic activity in Q3 was strongly affected by the poor performance of the agricultural sector (-16.4%), due to the persistence of the drought and the worsening of water stress.