RBA sets scene for steady rise in rates

The RBA has hiked its inflation forecasts, indicating there will be a steady rise in interest rates. (AAP)

The Reserve Bank of Australia has set the scene for a steady climb in interest rates to curb inflation, and concedes this will weigh on household budgets.

In its quarterly statement on monetary policy, and just days after raising the cash rate for the first time in over a decade, it predicts inflation will jump to six per cent by the end of the year after its recent rapid rise to 5.1 per cent.