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The Reserve Bank sets the Official Cash Rate (OCR) every six weeks, influencing the interest rates for loans and savings across various sectors. This rate is crucial for managing consumer price inflation and economic activity. The Bank aims for price stability; higher interest rates can reduce excessive borrowing and spending during economic booms, while lower rates stimulate borrowing and investment during economic downturns. OCR announcements occur at 9 am, prompting immediate reactions in financial markets. Overall, the OCR guides the overnight rate, impacting broader economic conditions.