Australia’s economy faces weaker growth and higher-for-longer interest rates under US president-in-waiting Donald Trump’s inflationary policies of imposing tariffs on China and maintaining larger budget deficits.

That’s the view of investors and Treasury officials who are bracing for a sustained period of market volatility after Mr Trump’s victory triggered the Australian dollar to slump almost 2¢ to US65¢ against a stronger US dollar, Bitcoin to surge and interest rates in global bond markets to jump higher.