What does hawkish and dovish mean?  

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What does hawkish and dovish mean?

Here’s a cheat sheet that summarizes the difference between hawkish and dovish monetary policies:

Hawkish Dovish
Objective Decrease inflation Stimulate economy
Monetary Policy Stance Contractionary / Tighten Expansionary / Loosen
Current Economic Growth Strong Weak
Current Inflation  Inflation increasing Inflation decreasing or negative
Interest Rate Increase (“Hike”) Decrease (“Cut”)
Balance Sheet Reduce Expand
Currency Effect Currency appreciates Currency depreciates

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