Still Don't Understand The Terms 'Hawkish' And 'Dovish'? Kakiforex.Com Provides Details Of This Term For You!

Often the statements from the central bank as well as speeches from important people of the financial markets, are associated with the terms ‘hawkish’ or ‘dovish’.

However, all these comments depend on their approach to a particular economic situation.

The central bank is described as aggressive or ‘hawkish’ when they support rising interest rates to reduce inflation from soaring to higher levels.

As a simple example, the Bank of Japan would be considered hawkish if they issued a statement that was seen as biased towards rising interest rates to reduce inflation.

Instead, a central bank will be dubbed dovish when it is more in favor of economic growth and the employment sector. They will also be more likely to make statements to cut interest rates and not be too aggressive on an action.

Once you know the meaning behind these two words, you must be wondering, "Which is better?" "Hawkish or dovish?"


Actually, there is nothing better between the two.

This term only describes the bank's propensity for something to happen. Either they will take aggressive action, or simply give an opinion on something that happens according to the views of analysts who are familiar with the ins and outs of the market.

So, if there is economic news that uses this term, you will definitely understand more about article content and market approach, right? No wonder most central banks place hawkish symbols (eagles) as symbols on their banks. Perhaps to illustrate the aggressive stance they adopt in making decisions and helping the current economy.

Hope this writing helps!