Secondly, upon the entry into monetary union at the end of the year, if not before, uniform money market rates will pertain. On account of the increase in mutual interdependence in Europe, monetary policy cooperation between the national central banks will have to be reinforced, even though final responsibility will rest with the individual national central banks.
There will presumably also be a further convergence of central bank rates. However, such convergence need not take place at the very beginning of the interim period. Limited interest rate differences and exchange rate movements may well continue to exist for some time.