Indonesia’s central bank will leave its key interest rate steady at 3.5% on Thursday. The country’s central bank did not raise its key interest rates from a pandemic record low, since inflation held within its target range of 2% to 4%. However, the Fed’s 75bps interest rate hike and the prospect of more aggressive hikes in the coming months sent the rupiah tumbling by 2% this week, its worst weekly performance in three years. The central bank signaled that it will start increasing its key interest rates in July. The central bank governor Perry Warjiyo acknowledged that inflation will rise above the target band this year but predicted that it will cool down next year.