Capacity Building in Economic Modelling and Forecasting for East African Community (EAC) Central Banks

This report presents findings on need assessment in Modelling and Forecasting in East African Central Banks. This assessment has been commissioned by the Monetary Affairs Committee (MAC) of East African Community and the United Nations Economic Commission for Africa, Sub Regional office for Eastern Africa (henceforth UNECA/SRO–EA).

Modelling and forecasting training program is designed to provide adequate skills to the staff of EAC Central Banks in Economic Analysis, Modelling and Forecasting.  

Modeling and forecasting are key instruments in monetary policy formulation and implementation. Indeed, monetary policy is conducted in a forward-looking manner. For its efficiency, there is a need of assessing trends and developments in the domestic economy and external environment as well as the simulation and evaluation of the impact of monetary policy over the medium term. In other Words, There is a need for a Central Bank to have a clear understanding on its monetary transmission mechanisms. This is realized through macro econometric models based on the reality of the economy.

As EAC is deepening and widening its regional integration, capacity building in Modelling and Forecasting in EAC Central Banks will contribute to have good understanding about dynamics of economies in the region and then contribute to the implementation of the EAC Monetary Union which had been scheduled in 2012.