Hawkish and dovish describe the tone of a central bank or its officials on interest rates. Hawkish means leaning towards higher rates or tighter policy to contain inflation, and dovish means leaning towards lower rates or looser policy to support growth and jobs; the labels are commentators' shorthand, not official terms. Statements described this way can coincide with higher volatility and wider spreads.
Also called: hawkish, dovish, hawk, dove, policy tone
Hypothetical example
Hypothetically, a central bank's statement says inflation remains too high and further rate rises are possible: commentators would call it hawkish. A statement saying rates may be cut if growth slows would be called dovish.
