Monetary policy challenges threaten East African economic stability and growth.
The study looked at how changes in monetary policy affect inflation and output in the East African Community. They found that the impact of monetary policy is not always clear-cut, with different effects in different countries. Sometimes, the tools used for monetary policy can have conflicting effects on inflation. This makes it challenging to coordinate monetary policies across the EAC and move towards a unified East African Monetary Union. The researchers suggest ways to make the monetary policy more effective in the EAC.