The sentiment of the central bank when it is looking to stimulate the economy and feels rates are too high for its policy.
Sometimes, the sentiment is relative to market expectation. For example
if the market expects the central bank to increase rates, yet it
expresses concern of inflation which prevents the hike, the statement
can be interpreted as dovish.
A member of the bank who intends to cut rates can also be called dovish.
Dovish statements usually have a negative effect on the currency.
Being dovish is the opposite of being hawkish.
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