As foreign exchange pressures wane, the central bank can dedicate full resources and focus on fighting inflation It [the depreciation] was due to the differential and the fact that people look at the exchange rate and say, "All the corporations that borrow abroad wanted to buy their dollar needs for debt servicing."
The general conclusion from these studies is that increases in policy rate have  2  Bernanke, Ben and Alan Blinder (1995), “Inside the Black Box: The Credit Channel of Monetary Transmission”, Journal of Economic Perspectives, 9, 27–48. BIS central bankers’ speeches  3  a statistically significant negative impact on output and moderating impact on inflation.