The European Central Bank has kept its base interest rates steady but said it was "closely monitoring" the energy price shock. The impact of the war against Iran on energy costs has pushed inflation over ECB targets.

The European Central Bank is leaving interest rates unchanged amid uncertainty about how volatile energy prices will affect inflation.

The European Central Bank left interest rates unchanged on Thursday, pausing after June's first hike in three years as easing inflation bought policymakers time, while renewed…