Hawkish

Definition

Describes a central bank or official leaning toward tighter monetary policy, often to bring inflation down.

A hawkish message can signal that rates may rise or stay high for longer than investors expected. The label can describe a speech, a policy statement, or a shift in an official’s views. Markets can react to that signal ahead of an actual rate decision.

Example

Inflation is still high, and a central bank official says rates may need to stay higher for longer. That is a hawkish message.