Reserve Bank of Australia governor Philip Lowe has slammed as "very problematic" the inflationary forces being unleashed by Donald Trump's unprecedented borrowing surge to fund company tax cuts, saying they are landing on a US economy already running at full tilt.

Over three hours of politically sensitive testimony before a House of Representatives committee, Dr Lowe lamented the global shift toward lower company taxes, arguing that if every country joined the race downwards the economic benefits would only be shortlived.