In compliance with article 33 (new) of law n°2006-26 of 15 May 2006 modifying law n°58-90 of 19 September 1958 providing for creation and organisation of the Central Bank of Tunisia (BCT), the main assignment of the monetary policy consists in preserving price stability.

In fact, the sound control of inflation as reflected through the trend in consumer price index, helps ensure a non-inflationary growth that contributes to job creation and improvement of social welfare while preserving the purchasing power.

To this end, through the instruments put at its disposal, the BCT influences the money market interest rate considered as the main instrument for conducting the monetary policy to achieve the final target of price stability.

This monetary policy framework is based, further to monetary and credit aggregates, on a diversified range of indicators closely tied to inflation. This involves import prices, output gap, underlying inflation and so on.

Given the importance of inflation forecasts for this monetary policy framework, major efforts are being implemented within the BCT to set up a device for analysis and forecast of inflation on the short term. This will help as a reference for decision making with respect to monetary policy and as a means of communication with the public.

This approach comes in the framework of developing and reinforcing the analytic framework aiming to better surround the different channels of transmission of the monetary policy and simulate the impact, notably, of variation of the key rate on the main economic variables.