The central bank has been under pressure to raise rates to defend the sliding ruble, which has shed around 20 percent against the dollar since mid-year as a result of falling oil prices and Western sanctions imposed over Russia's actions in Ukraine.
The increase was above analysts' expectations, according to a Reuters poll this week which predicted a half-point increase.
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"If external conditions improve, and a persistent trend for lowering inflation and inflation expectations emerges, the Bank of Russia will be ready to start to ease its monetary policy," the central bank said in a statement.
The bank said it is concerned about inflation, which is rising as a result of the weaker ruble and a ban on most Western food imports introduced in retaliation for sanctions.