The Central Bank of Zimbabwe has been lowering rate of interests of the economy to boost growth. The bank is being ________ in its monetary policy stance.

Question

Question

This question was previously asked in

RRB Group D 25 Aug 2022 Shift 2 Official Paper

Answer 1

The correct answer is " Dovish ".

Key Points

Doves tend to support low-interest rates and an expansionary monetary policy because they value indicators like low unemployment over keeping inflation low.
If an economist suggests that inflation has few negative effects or calls for quantitative easing, then they are called a dove or labeled as dovish.

Additional Information

Accommodative monetary policy is a strategy used by central banks that is aimed at keeping interest rates low in order to infuse more cash into the economy to boost growth and maintain or reduce unemployment.
neutral is the federal funds rate that neither stimulates nor restrains economic growth.
A hawkish Fed will assume an aggressive stance that prioritizes keeping inflation low or getting it lower. It’s likely to raise interest rates even if that causes job losses. Hawks are focused on inflation. They favor raising interest rates to restrict the supply of money.