Reserve Bank governor Alan Bollard surprised the market with a bigger-than-expected interest rate cut, citing a marked slowdown in household spending and a deteriorating global economy.

Reserve Bank governor Allan Bollard is widely expected to cut interest rates again on Thursday with the inflation outlook having improved but the outlook for global economic growth deteriorating.

New Zealand's largest bank, ANZ National Bank's profit grew strongly during the June quarter although its share of the mortgage market slipped.

Kiwibank continues to increase profits and gain market share in the mortgage market, although it describes the economic environment as "challenging."

TSB Bank's net profit rose strongly in the June quarter, as did its deposit book, but its mortgage book shrank slightly.

South Canterbury Finance emphasised its longevity, and that it survived the great 1930s depression and World War ll, as well as its diversified lending portfolio and strong cash position when announcing its latest results.

Four weeks out from the next monetary policy statement on September 11, economists are unanimous they expect Reserve Bank governor Alan Bollard to cut rates again.

While insisting the Hanover group companies remain solvent and its shareholders will continue to provide support, chief executive Bruce Gordon is unable to say whether investors will get all their money back.

While New Zealand's largest bank ANZ National Bank is expecting bad loan charges to treble this year, it will be off a low base and its first quarterly disclosure statement (GDS) under new banking rules shows its mortgage book has very low levels of bad loans.

Reserve Bank governor Alan Bollard has slashed interest rates, citing "unpleasant" international news and the risk the domestic economy will slow further, even as inflation heads to 5%.

The number of housing loans approved by banks each week has been dropping sharply, a new experimental Reserve Bank data series shows.

The apparently high level of riskier home loans shown in the government-owned Kiwibank's latest general disclosure statement (GDS) isn't a fair reflection of the quality of its mortgage portfolio, says managing director Sam Knowles.

The two New Zealand-owned home lending banks appear to have vastly different risk appetites.

New bank disclosure rules reveal ASB Bank's mortgage book is particularly conservative although there's also evidence the global credit crunch is starting to nibble.

While Reserve Bank governor Alan Bollard left interest rates unchanged as expected, his latest monetary policy statement sparked a huge rally in interest rate markets and the New Zealand dollar fell more than one US cent.

Most economists expect Reserve Bank governor Alan Bollard won't be quite ready to start cutting interest rates this week but a growing majority are expecting a rate cut by the end of September.