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Turkey crisis pushes Indonesia to raise rates again

Fourth hike in five meetings prompted by carnage in emerging market assets

The Indonesian rupiah has fallen by more than 7% this year, sinking to its lowest against the dollar since 2015 on Monday.   © Reuters

JAKARTA -- Indonesia's central bank raised its key interest rate for the fourth time in five meetings, partly in response to the Turkish currency crisis that has rippled through global markets.

Bank Indonesia decided on Wednesday to raise its benchmark seven-day reverse repo rate to 5.50% from 5.25%. The central bank has raised its key interest rate in all but one meeting since May, boosting it by a combined 125 basis points as it seeks to stem the decline of the rupiah.

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