Reserve Bank governor Alan Bollard raised interest rates as expected, ensuring floating mortgage rates are on the way up.

Reserve Bank governor Alan Bollard is likely to start hiking interest rates this week even though the housing market and consumer spending remain subdued and Europe's sovereign debt woes are pushing up banks' cost of borrowing.

Reserve Bank governor Alan Bollard appears to have given himself a little "wiggle room" on when he's likely to start hiking interest rates and has also signaled rates may not need to rise as much as in previous cycles.

With retail spending and the housing market faltering and domestic inflation running below the Reserve Bank's expectations, governor Alan Bollard is likely to leave interest rates unchanged at record lows next week but everybody is expecting a hike soon.

ASB Bank's December quarter profit slipped, as did its share of the mortgage market.

Reserve Bank governor Alan Bollard stuck to the script in leaving interest rates unchanged and indicating he may start hiking about the middle of the year.

Softer than expected inflation, retail sales and employment data and signs the housing market recovery has stalled will likely mean Reserve Bank governor Alan Bollard leaves interest rates unchanged on Thursday and he will reiterate the first rate hike is likely about mid-year.

TSB Bank's December quarter net profit surged and its mortgage book continued to grow strongly.

ANZ Bank reported net profit surged in the December quarter although its mortgage book was barely changed.

Westpac's New Zealand subsidiary's mortgage book galloped away in the December quarter, growing much faster than its market share and at nearly double the rate of the previous quarter.

Bank of New Zealand's December quarter net profit rose, thanks to a tax credit as a result of its settlement with the Inland Revenue Department over its structured finance transactions.

The Government-owned Kiwibank's profitability went backwards in the December quarter, the first time since inception it didn't improve, but its mortgage book continues to grow much faster than its market share.

Reserve Bank governor Alan Bollard has left interest rates unchanged and reaffirmed his expectation he will begin hiking rates around the middle of the year.

Benign inflation numbers put paid to any expectations Reserve Bank governor Alan Bollard to hike rates on Thursday and the debate is now focused on the first rate rise of the current cycle coming somewhere between March and June.

SBS Bank’s September quarter net profit fell 12%, largely reflecting a drop in net interest income, while its share of the mortgage market held steady over the quarter.

Westpac's New Zealand subsidiary saw a sharp drop in profitability in the September quarter, reflecting rising charges against profit for bad loans, although its mortgage lending grew faster than the average of the other banks.