We expect Banque centrale de Tunisie (BCT, the central bank) to implement measures to ensure sufficient liquidity in the banking system, but it will also keep a close eye on inflation. The central bank has further reduced reserve requirements from 5% to 4.5%. From 2012 onwards, it will maintain a relatively tight monetary policy, with the aim of ensuring that expansion in broad money (M2) stays manageable and inflation remains largely under control, although-given the easing of monetary policy in most major economies-there is scope for a looser policy. In the short term, the central bank will focus on maintaining liquidity to support bank lending, in light of the continuing unrest in the domestic market as well as the unrest in Libya (which will affect remittances). The BCT decided to leave its key interest rate unchanged.