The European Central Bank has raised its benchmark interest rate by 25 basis points to combat surging consumer prices. The move comes after inflation figures showed a headline rate increase to 7 percent for April, with core inflation slightly decreasing to 5.6 percent. Although the ECB began hiking rates in July 2022, inflation remains well above the bank’s target of 2 percent. Recent data reveals that the eurozone economy grew less than expected in the first quarter, with GDP registering at just 0.1 percent. Additionally, an ECB survey indicated that banks have significantly tightened access to credit, potentially reflecting the impact of higher interest rates on the real economy.