Russia's Central Bank on Monday hiked the key interest rate from 9.5% to 20% in a dramatic move amid sanctions.
The EU, US, UK, Canada and the EU Commission agreed Sunday to remove several Russian banks from the SWIFT banking system as Russia continued bombing Ukraine.
"External conditions for the Russian economy have changed dramatically," the bank said in a statement, adding this will help maintain financial and price stability and protect citizens' savings from depreciation.
The Bank signaled it would make further decisions on the key rate based on an assessment of risks from external and internal conditions.
Governor Elvira Nabiullina is set to speak at 4 p.m. (1300GMT) in Moscow, the Central Bank said.
Russia’s annual inflation rate accelerated to 8.73% in January, up from 8.39% in the previous month, the highest rate since January of 2016.