New Zealanders will no longer have to stick to their bubbles under alert level 2, Prime Minister Jacinda Ardern says.

But she was quick to add: "No parties".

"You can begin seeing family and friends again but we do want you to hang onto the same principles you are using generally in hospitality - to address issues around space, hygiene and contact tracing."

She said large-scale events in people's homes make all of that harder.

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"That is why we are saying under alert level 3 you can have friends and family around to your home but keep the numbers small.
"This is not the time for a large function or party at your home."

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The Prime Minister said she would be announcing specific guidance in the coming days, and announce on Monday whether the country will move to level 2 next week.

It comes after the director general of health Dr Ashley Bloomfield announced one new Covid-19 case today, linked to the Matamata cluster.

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The Waikato DHB is calling for anyone in the area to seek advice if they want to be tested, he said.

The total number of confirmed and probable Covid-19 cases is 1489, and 1332 people - 89 per cent - have recovered.

Two people are in hospital. The death toll from Covid-19 in New Zealand remains at 21.

Testing was higher than 7000 yesterday for the first time and Bloomfield said this was a good sign as DHBs were getting ready for surveillance testing.

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He said a review had been completed into the use of masks in public, and there were risks and benefits.

Covid19.govt.nz: The Government's official Covid-19 advisory website