High inflation and the weak rouble triggered a higher than expected raise.
Russia's central bank raised its key interest rate by 2 percentage points to 15% on Friday, which was the fourth consecutive time the bank hiked the borrowing costs recently.
Analysts had predicted 14%.
The bank cited a weak rouble and stubborn inflation pressure, which have "significantly increased to a level above the Bank of Russia’s expectations," said the national lender in a statement.
The bank also signalled for the first time that it may not be able to return inflation to its 4% target in 2024, by forecasting the price increase for the end of next year at 4-4.5%.
The bank drew attention to increasing government spending as Russia pours fiscal resources into the defence sector and ramps up the production of military supplies.
Russia has hiked rates by 7.5% since July, when the rouble's exchange rate broke temporarily through 100 to the US dollar.
Policymakers have taken further steps recently to stabilise the rouble.
Following the rate hike decision, the rouble leapt to a more than six-week high against the dollar.