Prime Minister Jacinda Ardern said the Government on Monday will consider increasing the maximum size of gatherings under alert level 2.

The current rules cap the number of people allowed to gather in one group at 10.

The Government also has the option to further relax physical distancing rules, as it gets Covid-19 data back.

This could come while New Zealand is in level 2, she said.

She said this was "nimble approach".

Ardern said New Zealand will stay in level 2 until the Director-General of Health advises it is time to move.

However, she said the Government would continue to make "incremental" changes.

"At this stage, we remain cautiously optimistic."

In terms of the next steps for gathering rules, she will seek advice from Ashley Bloomfield.

Ardern suggested it was likely the increase on the cap would be smaller at first, rather than going from 10 to 100.

For example, it's likely to move gradually - 20 people one week, 30 the next.

'Huge faith' in bars and clubs

Ardern said it was good to see cafes full - "I know that from personal experience".

She said tomorrow, bars and clubs can open and that the Government intends to continue to phase in more activity.

Ardern said she has "huge faith" in bars and clubs, which are allowed to open tomorrow.

She acknowledged times have been tough for owners and bar staff and she wished them well going forward.

Ardern said Covid-19 is still in the community and the country needs to be careful as it heads down the alert levels.

"We have entered level 3 and 2 with a degree of caution."

She said there only been two new cases in the seven days in level 2.

These cases represent the long tail of Covid-19.

In fact, there has been no community transmission since mid-April, Ardern said.

She said there is no community transmission in New Zealand - but there is still risk that needs to be managed.

She said the Government will continue to test for Covid-19 and said it's part of the "new normal".

But she said amendments to border rules can happen at any level.

For example, she said a transtasman bubble could occur in level 2 and that at alert level 1 there would still be some restrictions around the border.

But a lot of things that prohibit business activity will be removed.

She said many people want to return to normal as soon as possible.

But she said there is no timeframe around when New Zealand will go into level 1.

Ardern said there were "pros and cons" about creating a new public holiday and wants to hear from businesses as to what they would like.

She would not provide much detail, other than she did not want to be dismissive of "extraordinary ideas".

Ardern on National Party leadership coup

She had her own experience in Opposition and, because of that, she would not comment on National's leadership woes.

"I'm focused on jobs and employment."

Labour's party list is not completed yet, Ardern said.

She confirmed there would be new faces on Labour's list.

She hoped that Labour's values would help draw in good candidates - she did not think it would be her popularity levels.

When pressed about Simon Bridges' leadership she said the Opposition is important, especially at a time like this.

On the Epidemic Response Committee, Ardern said it does not make sense for Ministers to front up for both regular select committees and the Epidemic Committee.

National has been upset this week after Ministers and Treasury officials did not front to the committee.

New Zealand has reported no new cases of Covid-19 today.

Over 92,000 New Zealanders have downloaded the new Covid-19 tracer app.

Director-General of Health Dr Ashley Bloomfield says the app, which went live overnight, is another tool in our box to help with contact tracing.

He says it compliments other actions businesses are taking to record who has been on their premises.

He says further releases of the app will advance the contact tracing process - allowing such things as messages being sent to people who may be a close contact of a confirmed case.

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