Russia’s central bank unexpectedly held its key interest rate steady at 21 on Friday, citing tighter monetary conditions that could help curb inflation. The bank highlighted that recent autonomous factors had cooled credit activity and raised borrowing costs, creating a foundation for disinflation. This decision defied market expectations of another 200-basis-point rate hike. Annual inflation reached 9.5 in December, over twice the central bank’s 4 target. Rising food prices, particularly dairy products, have been key drivers. Russian President Vladimir Putin acknowledged inflation as an "alarming signal" during his annual Q&A session but emphasized wage and income growth.