Analysts said that they had not expected the move. The rate hike will come after Western sanctions over the crisis in the Ukraine were boosted. Domestic stocks and the ruble tumbled earlier this year after sanctions were implemented.
"The main reason for inflation acceleration was the effect of the observed ruble depreciation on prices of a wide range of goods and services," the bank said.
The "consumer price growth rate" increased to 7.8% in June. The bank said that its rate hike was to try to bring the rate down to 4%. Monetary conditions have been tightening since March due to "geopolitical factors," the bank said.
Research firm Capital Economics said that the rate rise had taken analysts by surprise, and could be a pre-emptive move to try to limit the amount of cash leaving Russia ahead of any new sanctions by the US and Europe. Should conflict escalate in Ukraine, the key interest rate may have to rise to 10% or more.