Correction on the cards?

New Zealand’s economy is generally considered to be in good health at the moment and Infometrics Ltd’s latest forecast supports that view.

But Infometrics chief forecaster Gareth Kiernan believes the solid outlook for growth masks several economic risks – and Auckland mortgage holders need to watch out.

Wholesale interest rates will gradually rise further over coming months and the Reserve Bank will start increasing the official cash rate by mid-2018, he said.

“Mortgage holders in Auckland look particularly vulnerable to even modest interest rate rises that are likely to occur in the next 2-3 years.