Minutes from the European Central Bank's meeting reveal that some officials would not have opposed an interest rate increase during last month's policy session. The record of the ECB's April 29-30 meeting stated: "Some members noted that the final decision was a close call. Had a rate hike been on the table for this meeting, they would not have objected to it." Following the policy meeting, several ECB officials, including some traditionally more dovish members of the Governing Council, have begun to signal the possibility of a rate hike in June. Their concern is that inflation, currently at 3% and still rising, could fuel wage demands and de-anchor future inflation expectations—trends that are costly to reverse once established. Even as the initial energy shock triggered by the conflict in Iran begins to reverse, ECB Chief Economist Philip Lane said on Thursday that second-round effects would "be with us for a while." Economists and investors expect the ECB to implement at least two rate hikes this year. Below are other key points from officials' discussions in April: On Interest Rates: "The energy price shock and associated supply disruptions present a dilemma for monetary policy. High energy prices, weakening confidence indicators, and cooling growth create a complex trade-off. "Maintaining price stability may require a tightening of monetary policy to prevent inflation expectations from becoming de-anchored, even if this amplifies the negative economic impact of the shock." "A 'wait-and-see' approach may be increasingly inappropriate. Some argued that this situation shifts the primary focus to determining the most appropriate timing for a rate hike." On Inflation: "Members assessed that upside risks to the inflation outlook had intensified. It is now evident that the energy price shock is not only large but also becoming more persistent, thereby increasing the risk of it feeding into broader inflation dynamics." "It was noted that some effects, particularly indirect ones, are unavoidable. The key questions will be their scope, magnitude, timing, and duration." "Over the next six weeks, the situation in energy markets, especially oil markets, could reach a fork in the road." "On one hand, if the flow of energy products through the Strait of Hormuz increases, spot and futures oil prices could react favorably. However, even in this scenario, restoring normal oil and gas supplies will take some time, as authorities in Saudi Arabia and Qatar have warned that repairing damaged facilities requires time. "On the other hand, if the conflict persists or worsens, the energy market situation could become more critical, with further increases in spot and futures oil prices and natural gas prices, making shortages increasingly likely." "Short-term inflation expectations have risen significantly, while most longer-term inflation expectation indicators remain around 2%, supporting the view that inflation will stabilize near the target over the medium term." On the Economy: "There are already some signs, particularly in survey data but also in some hard data, that the situation is weighing on confidence and economic activity." "At the same time, it was noted that there is not much new hard data, and evidence of the shock's impact in these data remains limited so far."