Dovish

Definition

Describes a central bank or official leaning toward easier monetary policy, often to support jobs and economic activity.

A dovish message can signal that rate cuts are more likely or that a central bank is willing to wait before raising rates. An official’s tone can shift as hiring, spending, or inflation data change. Investors listen for such shifts when assessing where rates may go.

Example

Hiring is slowing, and a central bank official says lower rates may soon be appropriate. That is a dovish message.