The term dovish generally describes an economic outlook towards lower interest rates.

    It is based on the belief that an increase in inflation will have a minimal impact on an economy and so an advocate of dovish policies would seek to encourage economic growth through low interest rates.

    For example, if a central bank issues a statement that it expects the inflation rate to be lower in due course, it would be considered a dovish comment.

    The opposite of dovish is hawkish.