Hawkish and dovish
Updated 2026-09-20
Definition
A "hawkish" central bank tone signals a tendency to raise rates or keep them high; "dovish" a tendency to cut them or keep them low.
Why it matters
Markets react to tone as well as to the decision: a bank that hikes but signals pauses can come across as dovish. It moves currencies and gold.
Practical example
The Fed leaves rates unchanged but talks of possible further hikes: a hawkish tone, the dollar tends to strengthen.
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Educational content, not financial advice. Trading involves risk.