Dovish sentiment favours accommodative policies, aiming to stimulate economic growth even at the cost of higher inflation. This stance involves lowering interest rates, engaging in quantitative easing, and prioritizing economic activity over inflation control.
Hawkish sentiment, on the other hand, leans towards restrictive policies, prioritizing inflation control and price stability over economic growth. This stance involves raising interest rates, reducing the money supply, and tightening monetary conditions to prevent rapid inflation.
