The Central Bank of Russia increased its key interest rate by 200 basis points, to 21%. She attributed this move to the increases in consumer prices, which have moved significantly above her forecasts. while warning of ongoing dangers of high inflation in the medium term.

The new interest rate, which exceeded analysts’ estimates by 100 basis points, is at highs since February 2003, according to Reuters. The previous move by the Central Bank of Russia was in September, when it raised its key interest rate by 100 basis points, to 19%.

Annual seasonally adjusted inflation averaged 9.8% in September, up from 7.5% in August, Russia’s Central Bank said. Now predicts that will be set in a range of 8.0-8.5% by the end of 2024noting that they are significantly above the July forecast of a range of 6.5-7.0%.

“Over the medium term, the balance of inflationary risks continues to tilt significantly to the upside”the bank said in a statement. “The main risks are related to persistently high inflation and the upward deviation of the Russian economy from a balanced growth path, as well as the deterioration of foreign trade conditions.”

The Russian economy has been pressured by falling international prices, which have affected oil exports, as well as Western sanctions following the invasion of Ukraine, events that have sent the ruble tumbling.