The nation of Valoria pegs its currency, the Valor, to the currency of a major economic bloc where the policy interest rate is 2%. Due to a recent political crisis in Valoria, financial markets now widely expect the Valor to lose 7% of its value against the bloc's currency over the next year, despite the government's commitment to the peg. Explain the economic pressures this situation creates and describe the specific action the Valorian central bank must take with its policy interest rate to maintain the peg. Justify your answer by explaining why this action is necessary to influence investor behavior.