Domestic economic activity is increasingly showing improvement in line with increasing levels of public confidence as indicated by increases in inflation as well as CCI and PMI. However, the increase in new Covid-19 cases in several countries due to the Omicron variant which appears to be spreading more quickly poses a very high global risk which could trigger a new wave. A retightening of government-imposed social restrictions is becoming inevitable, and this is jeopardizing whatever recovery global supply chains have made around the world. Global market risks have also increased in the past month as a result of faster monetary policy tightening due to the upward trend in inflation. The government's efforts to prevent a major spike in Omicron cases are critical to maintaining the momentum of economic recovery. Meanwhile, BI needs to protect the Rupiah amidst economic recovery by holding the benchmark interest rate at 3,50% this month.

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