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AAP
AAP
Business
Kaaren Morrissey

'Going to get tough': rate increase to hit hospitality

Cafes and restaurants are being warned to expect a downturn as customers manage tight budgets. (James Ross/AAP PHOTOS)

Struggling restaurants and cafes are facing even tougher times ahead after interest rates rose for the fourth time in 2026, adding to cost-of-living pressures on households and businesses.

The increase, delivered by the central bank, is likely to prompt consumers to cut back on dining out, as they rethink budgets and adjust how often they go out to eat or drink.

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