The BI7DRR hikes also take into account the need to strengthen the exchange rate stabilization policy, to keep Rupiah in line with its fundamental value, due to the strengthening of the US dollar and high uncertainty in global financial markets, amidst increasing demand in the domestic economy.
In addition, the monetary operations were also strengthened by increasing the interest rate structure on the money market in line with the BI7DRR rate hike to lower inflation expectations and ensure that core inflation returns to its target range earlier (Graph 12). With a consistent implementation of monetary policy tightening along with policy coordination with the Central and  Graph 12.