Well, the question is as simple as the subject above. What do I write? Do I write: 
"A central bank targets inflation. It uses the following instruments..."
or
"A central bank targets inflation. She uses the following instruments..."
or
"A central bank targets inflation. He uses the following
instruments..." (whereas I doubt that this male version is the correct
way!)
Should be a simple task to find out :)

Howdy tassetee-ga,

Quite simply, objects, which include organizations or companies, are referred
to as "it," so the following is the correct form of the sentence in question.

"A central bank targets inflation. It uses the following instruments..."

Alternatively, you could use something such as the following.

"A central bank targets inflation. They use the following instruments..."

If you need any clarification, please feel free to ask.


Search strategy: Personal experience.

Looking Forward, denco-ga - Google Answers Researcher

Top, thanks. The comments were great! I am writing about central banks
in general, so "it" hits it best. However, I would use "they" only if
I were speaking about, e.g., the Federal Open Market Committee. So
"it" is perfect, thanks!

First, I'd just like to confirm what denco-ga already said: the
"central bank" would be an it.

However... 
1. There are some peculiar and rare exceptions to the rule that
objects are referred to as "it."  Ships, for example, have a custom of
being referred to as having female gender.  For example... "The
Titanic, thought to be unsinkable, hit an iceberg, and _she_ sank into
the icy sea.  _Her_ bow was the last to succumb to the ocean's pull,
eventually disappearing under the waves as the band played the final
stanza of Freebird."

2. I suspect that you aren't writing about the mechanism of central
banks in countries in general, but instead are writing about a
specific central bank.  If that's the case, then "central bank" is a
proper noun (name of a specific bank), and therefore it should be
capitalizing ("Central Bank").

Tassetee,
From your comment elsewhere, I expect that you are from the European
continent, where "banks" are always female, making it hard to break
the feeling that the same word should be in English.

Strict grammarians might not like the second example: "A central bank
.... They ...",  although most of us probably make a similar error
quite often:  If anyone says that, they ..." (instead of "he" or
"she").

UK English does allow usage of the plural pronoun "they" when the
reference is to a single noun that is clearly a group of persons: 
"Parliament ....  They passed the government's bill."  "The Central
Bank's monetary council/committee targets the inflation rate.  They
use the following instruments."

Much thanks for the kind ocmment and 5 star rating, tassetee-ga.

Glad to have been of service.

Looking Forward, denco-ga - Google Answers Researcher

Apologies, but that should have been: "Much thanks for the kind comment ..."

Just to comment... In spanish most things have a defined gender
(finishing word is  "o" for male and "a" if female) then central bank
= banco central; should be a "he". However, if using spanish grammar
rules, which hopefuly applies in english too, I wouldn't say:

A Central Bank targets inflation. He uses the following...
but:
A Central Bank targets inflation. It uses the following

Because, although it has a male gender, "Central Bank" is an inanimated object.
Hope it helps, this is just a comment!