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The Reserve Bank sets the Official Cash Rate (OCR) every six weeks, affecting interest rates for borrowing and savings. These rates influence consumer price inflation and economic activity. The Bank’s goal is to maintain price stability. If the economy overheats, raising interest rates can curb excessive borrowing and spending while promoting saving, which helps control inflation. Conversely, if the economy slows, lowering rates can stimulate borrowing and investment needed for growth. The Bank announces the OCR at 9 am, with immediate reactions from financial markets, impacting overnight rates and wider economic conditions.