Use rather to specify a preference for one thing over another. Wouldn't you rather go to the movies than stay home and clean the house?
Rather can also be used to mean "on the contrary," or to introduce a contradiction. You didn't believe in ghosts — rather thinking there was a scientific explanation for any ghostly appearances — until you saw a ghost yourself. The adverb rather also means "to a certain degree." You might grudgingly admit that your mom's strange-sounding chocolate-avocado pudding was actually rather tasty.
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