Consumption and production activities are gradually returning to normal as indicated by an increase in inflation and tax revenues
higher than the target. However, the public may not yet have full confidence considering the government confirmed the first Omicron case in December when the number of daily confirmed Covid-19 cases was around 200 cases, which has since increased due to local transmission, as evidenced by the slight decline in IKK and PMI . Rising interest rates in several countries as well as plans to increase interest rates in major economies pose risks, especially for developing countries. In addition, global supply chain disruptions and rising inflation in many countries could force developing countries to start raising interest rates. However, considering that inflation is still below target and to support the ongoing economic recovery, BI must continue to maintain its benchmark interest rate at 3,50% at this month's Board of Governors Meeting.

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