Although Turkish lira stabilized a little bit after central bank announced interest rates hike, some investors worry that such raise shall be more significant than bank is ready to deliver, Bloomberg writes.

Even after raising rates by 700 basis points since December, consumer price growth just accelerated in recent months, and rate adjusted for inflation was just 1%.

Due to turmoil at emerging markets around the world, the central banks are in the situation, where they have to take decisive actions. Argentina, for example, raised interest rates by 1500 basis points just during last week. According to Nomura International Plc, Turkey has to lift its one-week repo rate at least by 575 points to 23,5%. But it is not clear at the moment, whether bank’s leaders are ready to such aggressive monetary tightening.

Experts at Credit Agricole SA think that aggressive rate hiking will only disappoint market. Bank forecasts lira weakening to 8,30 per dollar by December.