ECB Slows Rate Hikes Amid Tightening Financial Conditions.

The European Central Bank (ECB) has raised its benchmark interest rate by 25 basis points to 3.25% in an effort to combat rising inflation, with rates now at their highest level since November 2008. Despite consistent rate increases, inflation remains well above the ECB's target of 2%. The ECB also announced it would likely stop reinvestments under its Asset Purchase Program in July. Recent data shows the euro zone economy grew less than expected in Q1 2022, while a recent ECB survey showed banks have significantly tightened access to credit.