Official bank rate

The official bank rate is a fancy term for the interest rate that the central bank of a country (like the Federal Reserve in the United States or the Bank of England in England) charges other banks to borrow money. Here's an example to help explain it better: Imagine you have a jar of candy that you want to share with your friends. One friend wants to borrow five pieces of candy from you and promises to give them back tomorrow. However, you don't want to just give the candy away for free, so you make a deal with your friend that they have to give you one extra piece of candy as interest. This extra piece of candy is like the official bank rate, which is the extra cost that banks have to pay in order to borrow money. The central bank sets the official bank rate as a way to control the economy and make it easier or harder for people to borrow money. When the official bank rate is low, it's easier for people and businesses to borrow money, which can help the economy grow. When the official bank rate is high, it's harder for people to borrow money, which can slow down the economy.