Indonesia pulls policy levers to curb inflation

Bank Indonesia combined its fourth-straight rate rise with exchange-rate and liquidity measures on Tuesday in a bid to tackle inflation, now in double digits.

The central bank raised its benchmark BI rate a quarter point to 9%, and said it intended to control exchange-rate volatility and absorb excess liquidity to "reinforce monetary-policy effectiveness" and reduce inflation to between 6.5% and 7.5% in 2009. Annual inflation in the year to July rose to 11.9%, up from 11.03% the previous mont