Central bankers can be viewed as either hawkish or dovish, depending on how they approach certain economic situations. As we know what is a hawk and what is dove we can spot out the difference easily.
Hawkish
Central bankers are described as “hawkish” when they are in support of the raising of interest rates to fight inflation, even to the detriment of economic growth and employment.
Words like “tighten” and “heating up” will be used.
For example, “The Bank of England suggests the existence of a threat of high inflation.”
The Bank of England could be described as being hawkish if they made an official statement leaning towards the increasing of interest rates to reduce high inflation.
Dovish
Dovish central bankers, on the other hand, generally favour economic growth and employment over tightening interest rates. They also tend to have a more
They also tend to have a more non-aggressive stance or viewpoint regarding a specific economic event or action.
Words like “soften” and “cooling down” will be used.
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