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Home / Business / Economy

The Economy Hub: What to expect from 2017

Liam Dann
Liam Dann
Business Editor at Large·NZ Herald·
21 Dec, 2016 08:03 PMQuick Read

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US President-elect Donald Trump.

US President-elect Donald Trump.

After a mad year of record house prices, record immigration, low inflation and crazy political events, making predictions for 2017 is a mugs game.

But there some key themes that look likely to roll on into the new year.

In this final edition of The Economy Hub for 2016 we look at the big themes that will dominate the year.

The Trump effect will continue to hold sway with all eyes on the US in January for his inauguration. But already markets have responded to his plans for spending and tax cuts with expectations that we will see more inflation in 2017.

That's pushed up the interest rate track and funding costs for banks.

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In New Zealand the Reserve Bank is expected to keep rates on hold for most, if not all of the year.

There are some signs that signs the red hot housing market is starting to cool - in Auckland at least.

Whether a drop in prices and sales volumes in Auckland is temporary trend or something new remains to be seen.

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