Tunisia central bank says a rise in inflation to double digits will be disastrous

Tunisia's Central Bank governor Marouane El Abassi attends a news conference in Tunis, Tunisia, February 20, 2019. REUTERS/Zoubeir Souissi/File Photo

TUNIS, May 20 (Reuters) - Tunisia's central bank had to raise its key interest rate this week to confront high inflation, and it would be disastrous if the inflation rate rose into double digits, the bank's governor said on Friday.

Tunisia’s central bank raised on Tuesday its key interest rate by 75 basis points to 7% to combat high inflation which reached 7.5% in April from 7.2% in March and 7% in February.

"It would be catastrophic if inflation reached double digits," said Marouan Abbasi the central bank governor.

Reporting By Tarek Amara; Editing by Hugh Lawson

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