Russia’s central bank hiked its key rate to a record high of 21%. The bank raised its projections for price growth in 2024 and 2025 and warned that “a return of inflation to the target will require a much higher medium-term key rate path than forecast in July.” The bank now sees inflation returning to its goal in 2026 rather than 2025. The rhetoric confirmed why they hiked so much as the key themes remain overheating, fiscal loosening, and increased inflation expectations.