Experts say Donald Trump’s election victory could change interest rate policy in the United States as his promised policies risk higher inflation, which could eventually have implications for Canadian interest rates and the Canadian dollar.

Markets rose Wednesday and into Thursday in the wake of his victory as investors braced for what his proposals might bring.

Among these promises are the imposition of significant tariffs on imported goods, especially from China, as well as lower tax rates and easing regulatory restrictions.

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Economist Sheila Block says Trump’s big tariffs are likely to put upward pressure on US inflation.

Rising inflation means the US Federal Reserve may be slower to cut interest rates, and markets have already begun to change their bets on how low the central bank is likely to go in interest rates.

A weaker Canadian dollar could in turn lead to inflation north of the border, which could make our central bank more reluctant to cut interest rates too quickly, Block says.

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What economic impacts could the US election have on Canada?