I am glad the government has decided to link the rates on small savings to government bond rates, but these rates will continuously have to be examined to ensure they do not form a high floor below which banks cannot cut deposit rates. All in all, bank lending rates have moved down, but not commensurate with policy rate cuts.
Also, disinflationary pressures on account of the past appreciation of the dinar will gradually wane in the coming period. In the short term, low costs of food production will work in the opposite direction. Financial and corporate sectors also expect inflation to be within the target band both for one and two years ahead.