Researchers from central banks in the East African Community (EAC) will benefit from skills to be offered by financial analysts from the Bank of England during a week-long training on financial modelling and forecasting.
The training, which kicked off yesterday in Kigali, is aimed at up-lifting research standards within the central banks of Rwanda, Kenya Uganda and Burundi.
The Governor of the National Bank of Rwanda (BNR), Amb.Claver Gatete, said that it is a great opportunity for regional central banks to learn best international practices, especially in conducting policy oriented research.
“We are privileged to have competent resource persons one can get in this area from a globally reputable institution in central banking studies,” Gatete said.
The training comes at a time the global economy is uncertain with high oil and food prices as well as the aftereffects of the global financial crisis, which have posed a challenge to monetary policy management in the region.
Oil prices rose to US$117.36 per barrel as of July 19, 2011 from US$89.07 in December last year.
“This is not a good environment to manage a monetary policy and ensure financial sector stability,” said he observed.
Gatete emphasised that the efficiency of any macroeconomic policy critically depends on a proper assessment and understanding of the effects of that policy on other macroeconomic variables.
“More particularly for central bank, there is a need to understand monetary transmission mechanism in order to have an impact on inflation.”
BNR intends to increase focus on research to mitigate risks in Rwanda’s banking industry, he said.
“As the world is changing, we need to empower our people, invest in research, and have regular and accurate information if we are shift from traditional way of managing risks.”