Indonesia's central bank raises key interest rate

AKARTA, Indonesia - Indonesia's central bank raised its key interest rate by a quarter point to 9.5 percent Tuesday, opting to tackle rising inflation as other Asia-Pacific countries cut rates or keep them on hold amid the global credit crunch.

Bank Indonesia also was hoping the move would stabilize the local currency, the rupiah, which fell sharply Monday against the dollar as the country's benchmark stock index tumbled 10 percent.

The global credit crisis that began in the United States will not seriously damage Indonesia's economy, said Gov. Budiono, who like many Indonesians goes by one name.