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Economics vocabulary · Central Banks and Interest Rates

Dovish

Meaning in economics, with examples

/ˈdʌvɪʃ/adjectiveCommon term

In economics, dovish means: Favouring lower interest rates or looser monetary policy, usually because supporting growth and jobs seems more urgent than fighting inflation.

In Turkish: güvercin, gevşek duruşlu

How it is used

The opposite of hawkish and used in the same way: a dovish tone, a dovish shift, the doves on the committee. A dovish surprise tends to weaken the currency and push bond yields down.

Example sentences

  1. The minutes were more dovish than expected, raising hopes of a rate cut.

  2. Two members of the committee took a dovish line and voted to keep rates on hold.

Common collocations

  • a dovish tone
  • a dovish shift
  • turn dovish
  • the doves
  • hawkishFavouring higher interest rates or tighter monetary policy because controlling inflation is seen as the top priority.
  • rate cutA reduction in the central bank's main interest rate, usually made to make borrowing cheaper and to support growth and jobs.
  • monetary policyThe actions a central bank takes to influence interest rates, the money supply and credit in order to control inflation and support the economy.
  • central bankThe national institution that issues a country's currency, sets the main interest rate and works to keep prices and the financial system stable.

More terms: Central Banks and Interest Rates

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This page explains English vocabulary for learners. It is not financial advice.