Dovish Shift

Definition ∞ A Dovish Shift refers to a change in monetary policy stance towards a more accommodative or expansionary approach. This typically involves lowering interest rates or increasing the money supply to stimulate economic activity. In financial news, it often signals a move away from restrictive policies, potentially impacting asset valuations and investment strategies. Such shifts can influence the attractiveness of risk assets, including digital currencies.
Context ∞ The current economic climate is seeing considerable attention paid to potential Dovish Shifts from major central banks. Analysts are closely monitoring statements and economic data to predict shifts in monetary policy, which could significantly affect inflation expectations and asset prices. Discussions often center on the timing and magnitude of these potential policy adjustments and their broader implications for global financial markets.