Officials Trained on Monetary Policy Analysis

Developing and emerging economies continue to experience an evolving policy landscape which presents a host of challenges to macroeconomic management and stability. This is reflected in the difficulties faced by these countries as they try to implement sound monetary policies. It is in light of the foregoing that, among others, there is a need for skills enhancement to aid MEFMI member countries to make informed choices that address emerging issues and support macroeconomic stability. Further, policymakers in the region also need to be capacitated on how to conduct better analysis in order to avoid implementing policies that may have unintended consequences.

In view of this, MEFMI revamped its e-learning course on introduction to monetary policy in an effort to assist policymakers in ensuring that policy conduct remains consistent with the changes in the policy environment. The course was conducted from 4 May to 12 June 2020 and started with a module on the main concepts and measurements used in monetary policy analysis, as well as monetary policy frameworks. Participants learnt about the monetary policy regimes such as reserve money, flexible money targeting and inflation targeting. The course also took participants through the process of Forecasting and Policy Analysis System (FPAS) as a way of shedding light on how central banks in the region can modernise their monetary policy frameworks towards a more forward-looking approach. In addition, it raised awareness on the impact of monetary policy in the digital era.

The course increased participants’ awareness, knowledge and necessary skills required for monetary policy analysis. Participants also gained a basic understanding of the FPAS process in order for them to be in a better position to support effective policy analysis.

Fifty-seven officials drawn from central banks and ministries of finance in eleven (11) of the 14 MEFMI member countries participated in the course. These countries are Botswana, Eswatini, Kenya, Malawi, Mozambique, Namibia, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe.  The participants were mentored by a resource team comprising Dr. Austin Chiumia, a MEFMI Accredited Fellow from the Reserve Bank of Malawi,  Kethi Ngoka-Kisinguh, a MEFMI Accredited Fellow from the Central of Bank Kenya and Dr. Sayed Timuno from the MEFMI Secretariat.

Prepared by Sayed Timuno