Hawkish

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    Dove and hawk interest ratesThe term hawkish generally describes an economic outlook towards higher interest rates.

    This is based on the belief that an increase in inflation will have a damaging impact on an economy. An advocate of hawkish policies would seek to encourage higher interest rates in order to dampen the negative effects on inflation.

    For example, if a central bank issues a statement that it expects the inflation rate to increase, it would be considered a hawkish comment.

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    The opposite of hawkish is dovish.

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