Minutes of the European Central Bank meeting: Energy impact becomes an unavoidable factor.

Minutes from the European Central Bank's June meeting show that the bank can no longer ignore the energy shock, as rising energy prices are expected to push the medium-term inflation rate above its 2% target. The ECB's Governing Council unanimously decided last month to raise the key interest rate to 2.25%, becoming the first major central bank to raise rates in response to soaring energy prices due to the Iran war. The minutes stated: "The current situation clearly no longer falls under the category of shocks that can be ignored." "The longer energy prices remain high, the greater the risk of indirectly and through second-round effects pushing up broader inflation. This situation increases the risk of energy shocks becoming entrenched in underlying inflation and medium-term inflation expectations."