The European Monetary Institute will tomorrow (10 January) publish a menu of the instruments it intends to use

Date: 09/01/1997

to conduct monetary policy once it turns into a fully-fledged central bank. However, final decisions on the appropriate tools can only be taken once the European Central Bank is created. The institute has left open several key questions, including whether to allow banks free access to the Target credit settlement system even if they are outside the EMU and whether to insist that banks place large compulsory minimum reserves with the central banks.