The Economy Hub: How will Donald Trump influence our interest rates?

Donald Trump is set to have a profound effect on our mortgage rates.

Mark Lister, head of private wealth research at Craigs Investment Partners, told The Economy Hub he expects the Trump effect to see interest rates and inflation jump considerably.

"A lot of Trump's policies are pro-growth, they will create inflation - it will mean higher interest rates and that will flow through to us in New Zealand," Lister said.

Despite the Reserve Bank cutting the OCR to a record low of 1.75 per cent this morning, Paul Glass, executive chairman of Devon Funds, said it's likely New Zealanders will pay more for their mortgages.

If Trump spends aggressively on infrastructure - like signalled - deficit could blow out and therefore interest rates could go up further, he said.

"I think the banks that fund a lot offshore are going to continue to face headwinds in that area. Global rates do appear that they're going up," he said.

Trade is another area also expected to have a long-term affect on New Zealand.

"We're a trading nation, we depend on exports, the US is our third biggest export market - I think we export about 10 per cent or our goods over there," Lister said.

"We're not in the firing line right away - it's China and Mexico and those places where Trump perceives jobs to have been taken away from Americans... - but anything that reduces global trade is a negative for us."

The Reserve Bank of New Zealand is expected to watch the US Federal Reserve to see if it hikes rates in December.

Glass said he believed it was too early to call whether we could expect to see changes in US policy from the Federal Reserve.

"We could see currency wars, we could see trade wars, or, we could see Trump comes back after Christmas and he's a lot more considertry, he's had some advice, he probably realises that a lot of the policies he's been advocating can't be implemented.

"You have to hope that the man that arrives in office is going to be different to the man we saw in the campaign. The reality is we don't know... This is such an unusual candidate that the market probably at this stage is at a little bit of a loss as to analyse what the likely impact is going to be."