Soaring global energy and food prices intensify inflation pressures and undermine the ability to stimulate domestic economic growth in various countries. At the same time, the Fed’s policy rate hikes and the strong US dollar exert depreciatory pressures on various currencies, including the  Scheme 7.
Bank Indonesia Monetary Policy Direction in 2023 MITIGATING THE IMPACT OF GLOBAL SHOCK SPILLOVER STAGNATION - RECESSION HIGH INFLATION  GLOBAL POLICY RATE "HIGHER FOR LONGER"  STRONG US DOLLAR AND WEAKENING CURRENCY ACROSS THE WORLD  HIGH RISK PERCEPTION AND "CASH IS THE KING"  Monetary Policy "Pro Stability" : Front Loaded, Pre-emptive, Forward Looking  MONETARY POLICY TRILEMMA  1  POLICY RATE FOR INFLATION  RUPIAH STABILIZATION  FOREIGN EXCHANGE RESERVE ADEQUACY  STRENGTHEN THE STRATEGY OF INTEGRATED MONETARY POLICY MANAGEMENT  Source: Bank Indonesia  60  2  TARGET  CORE INFLATION WITHIN TARGET 3±1% ON THE FIRST HALF OF 2023 AND RUPIAH EXCHANGE RATE STABILIZATION POLICY  COORDINATION WITH GOVERNMENT  Policy Rate BI7DRR  On a front loaded, pre-emptive and forward looking basis to lower inﬂation expectation and core inﬂation ealier, in the ﬁrst half of 2023  1.