In 2022, UK pension funds industry was under severe pressure as most of the funds, which employed defined benefits plan, put their asset under management in sovereign bonds and fixed income derivatives. The pressure was initially induced by miscoordination of fiscal and monetary policies that drove the government bonds (UK Gilt) yields significantly higher under a short amount of time, while also caused pressure on the Great Britain Poundsterling (GBP). While the crisis happened a year ago and proved to be short-lived, the UK pension funds crisis episode can be a valuable lesson for Indonesia, as Bank Indonesia (BI) may need to keep its policy rate relatively elevated to maintain exchange rate stability while Indonesia’s Ministry of Finance (MOF) may opt to carry-out expansionary fiscal stance to boost consumer spending power.