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Economy

Turkey crisis heaps pressure on Asian central banks to raise rates

Indonesia becomes latest nation to tighten policy after major sell-offs

The Indonesian rupiah has fallen as much as 7% against the U.S. dollar this year.   © Reuters

TOKYO/MANILA -- Central banks in Asia are under pressure to conduct another round of interest rate increases, as the market turmoil in Turkey further undermines emerging market currencies. Rushed hikes, however, could stall economic growth.

Indonesia on Wednesday became the latest nation to tighten policy, increasing its benchmark rate to 5.50% from 5.25%.

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