What is DOVE? Back to list

Member SinceMar 07, 2022

Posts 263


Nov 04, 2022 a 15:16
A dove favours looser monetary policy, which means lower interest rates, in order to boost economic growth.

This should boost spending, benefit the economy, and create jobs. However, it carries the risk of rising inflation.

Lower interest rates tend to encourage investors to invest in higher-risk assets while discouraging saving. This can have a positive impact on an economy's equities and equity indices.

Government bonds become less appealing to foreign investors as interest rates fall. This reduces demand for the country's currency and may cause it to fall in value.

Analysts and traders use the terms hawks and doves to categorise members of central bank committees based on their likely voting direction ahead of monetary policy meetings.

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