This paper estimates the forward-looking monetary policy reaction function of the Central Bank of Tunisia (CBT) using quarterly data from 1993:Q2 to 2011:Q4. Policies which the CBT applied are analyzed according to the Taylor rule. The empirical results indicate that the CBT followed the Taylor rule in its interest setting behaviour. In forward-looking models,the response coefficient of expected inflation is greater than the output gap,which is consistent with the fact that inflation is the primary objective of monetary policy.The results of forward-looking models reflect the policies conducted in Tunisia.