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Further rate hikes likely in Tunisia, the Qatar blockade

The Tunisian central bank hiked its key policy rate aggressively this week and we think that further steps will be needed to correct the country’s large economic imbalances. Meanwhile, the UAE has denied reports that ships will now be allowed to travel to and from Qatar but, even if the blockade is eventually lifted, we doubt that this will provide a major lift to Qatar’s economy or markets.

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