Improving the central bank capacity to interpret data helps produce coherent medium-term forecasts and analysis, an International Monetary Fund or IMF survey indicates.
IMF survey carried out in December 2015 in low income countries such as South Sudan also indicates that improving central bank capacity provides policy recommendations consistent with current and expected state of an economy.
The IMF study resolves offering continued support to low and lower-middle income countries in their process of strengthening and modernizing frameworks through policy advice, technical assistance and training.
The study identifies sound principles of monetary policy applicable in low income economies such as price stability, macroeconomic and financial stability and transparent forward-looking policy strategy.