Indonesia’s central bank kept its benchmark interest rate at a record low of 3.5%. While inflation will likely breach the central bank’s target goal of 2% to 4% this year, the bank stated that there is no rush to hike interest rates as state subsidies and higher foreign reserve requirements can manage price pressures. The central bank’s deputy governor said that the bank is ready to increase interest rates if supply-side constraints start to affect inflation expectations and send core inflation higher.