AM Edition: Top 10 Politics Articles on LiveNews.co.nz for August 25, 2026 – Full Text

Source: Morningstar DBRS

August 23, 2026

DBRS, Inc. (Morningstar DBRS) confirmed New Zealand’s Long-Term Foreign and Local Currency – Issuer Ratings at AAA. At the same time, Morningstar DBRS confirmed New Zealand’s Short-Term Foreign and Local Currency – Issuer Ratings at R-1 (high). The trend on all credit ratings is Stable.

KEY CREDIT RATING CONSIDERATIONS

New Zealand’s AAA credit ratings are underpinned by the country’s fundamental strengths, including its effective policy frameworks, strong central bank credibility, and robust governing institutions. Although the public debt-to-GDP ratio has risen in recent years amid successive shocks, the debt burden remains moderate relative to other advanced economies. The government is pursuing a gradual fiscal consolidation strategy, and New Zealand benefits from a longstanding cross-party commitment to prudent fiscal management, thereby limiting election-related uncertainty around the consolidation path. New Zealand’s small and open economy is vulnerable to external shocks, but the country’s structural strengths, including a flexible exchange rate, provide substantial buffers.

The Stable trend reflects Morningstar DBRS’ expectation that New Zealand’s fundamental strengths will support an economic recovery over the next few years and that the government will make progress with its fiscal consolidation plan. The economy began to recover last year, supported by strong export commodity prices and accommodative monetary policy. The U.S.-Iran war temporarily dampened growth momentum early this year, as higher energy prices renewed inflationary pressures and weighed on domestic demand. In addition, the Reserve Bank of New Zealand’s (RBNZ) started to withdraw monetary stimulus, raising the OCR by 25 bps to 2.50% in July. Morningstar DBRS anticipates further hikes to bring inflation back to target, while spare capacity should also help contain underlying price pressures. The IMF expects the recovery to pick up in the second half of this year, with growth of 2.0% in 2026 and 2.7% in 2027, supported by strong primary exports and a recovery in domestic demand as the energy shock fades.

CREDIT RATING DRIVERS The credit ratings could be downgraded due to one or a combination of the following factors: (1) absence of fiscal consolidation over the medium term, or (2) a severe financial or external shock, leading to a prolonged deterioration in growth prospects.

CREDIT RATING RATIONALE

Gradual Fiscal Consolidation Underway, But Further Delays Remain a Risk

New Zealand’s fiscal deficit remains elevated following the pandemic and a period of subdued growth, but the government is pursuing a gradual, expenditure-led fiscal consolidation as the economy recovers. The government’s preferred fiscal measure OBEGALx (the operating balance before gains and losses excluding Accident Compensation Corporation (ACC) revenue and expenses) is estimated to have widened to a 2.6% of GDP deficit in FY25-26, from 2.1% in FY24-25. This higher deficit reflects weak cyclical tax revenue, increased benefits and pension payments, and higher debt servicing costs. In general government terms, the IMF projects a fiscal deficit of 3.9% in 2026. Successive economic shocks have delayed the consolidation, but the government is also phasing the adjustment to avoid constraining the economic recovery. The government projects the deficit will modestly narrow to 2.4% in FY26-27, before declining more quickly and shifting to a small surplus in FY28-29. Expenditure restraint is expected to lead the fiscal improvement, with stronger growth and bracket creep also supporting revenues. Nevertheless, the backloaded nature of the adjustment leaves the consolidation path vulnerable to downside risks. Softer near-term growth, rising social spending, and higher borrowing costs could slow fiscal repair, while growing defence and demographic spending pressures may make sustained expenditure restraint increasingly difficult.

Amid higher fiscal deficits, government debt has increased. New Zealand’s general government gross debt-to-GDP ratio rose from 32% in 2019 to 55% in 2025. The IMF projects the debt ratio will peak at 58% in 2027 and 2028 and then marginally decline, reaching 55% in 2030. New Zealand’s debt ratio remains moderate compared to other advanced economies, and the projected downward trajectory would help strengthen the credit profile. Sustaining sufficient fiscal buffers will be important to preserve the government’s capacity to respond to future shocks without materially weakening debt dynamics or fiscal sustainability. The debt profile is also supported by New Zealand’s sizeable Crown assets in the form of state-owned enterprises, the Superannuation Fund, and the ACC’s investment fund. According to the IMF, New Zealand’s net debt ratio stood at 26% of GDP in 2025, one of the lowest among advanced economies. The interest cost-to-GDP ratio also remains low relative to peers, supported by New Zealand’s moderate debt burden and substantial public sector financial assets.

RBNZ Begins Withdrawing Monetary Stimulus Amid Renewed Inflation; Housing Market Remains Subdued

The RBNZ has started to withdraw monetary accommodation in response to renewed inflation pressures. Prior to the U.S.-Iran war, headline inflation was slightly above target, reflecting persistent administered and other non-tradables price pressures. However, higher petrol and diesel prices lifted annual headline inflation to 4.1% in the second quarter, compared with 2.9% excluding fuel. Headline inflation has likely peaked and should ease as the energy shock fades and the pass-through to other prices remains limited. In July, the RBNZ raised the OCR by 25 bps to 2.50% to limit second-round effects. The increase represents a withdrawal of stimulus, rather than a shift to restrictive policy. The RBNZ expects inflation to ease towards the 2% midpoint in mid-2027, with subdued demand and a soft labour market supporting disinflation.

New Zealand’s housing market remains subdued following the sharp post-pandemic correction. House prices surged during the pandemic due to strong demand, fiscal stimulus, and low interest rates, before tighter financing conditions sparked a sizeable correction in 2022 and 2023. House prices have since broadly stabilized and remain about 13% below the 2021 peak (to the fourth quarter of 2025). However, more recently, renewed softness has emerged as the prospect of higher borrowing costs, economic uncertainty, and weaker growth weigh on demand. Increased listings relative to subdued buyer demand are limiting upward price pressure, even as New Zealand continues to face a longer-term housing supply shortage.

Financial stability risks related to the housing market appear contained. Non-performing loans and mortgage arrears have declined from their recent peaks. While mortgage holders have recently refixed at lower rates, the RBNZ expects this trend to reverse, with borrowing refixing at higher rates on average by March 2027 as financial conditions tighten. Relatively short fixed-rate mortgages are prevalent in New Zealand, which accelerate the transmission of interest rate changes to households. Most mortgage borrowers appear well-positioned to manage higher mortgage payments. Even if loan losses were to rise, the banking sector has strong buffers to absorb increases. Banks are well-capitalized, profitable, and liquid, while macroprudential measures help contain riskier mortgage lending. Even under more adverse conditions, New Zealand’s financial system should remain sound, and banks’ robust balance sheets and profitability should continue to support lending to the private sector.

Solid Medium-Term Growth Prospects Despite External Vulnerabilities

New Zealand has a strong record of economic growth, with real GDP expanding by an average pace of 2.8% per year between 1990 and 2019. Structural reforms implemented in the 1980s and early 1990s transformed the Kiwi economy from a highly regulated and protected system into a more open and competitive economy. Rapid growth in China also supported the expansion through strong demand for New Zealand’s commodity exports and services, particularly tourism. Although growth is likely to moderate from the pace recorded over the past 30 years, medium-term growth prospects remain comparatively solid. The IMF estimates potential growth at 2.2%, above most advanced-economy peers. Comparatively weak labour productivity levels, however, continue to constrain the outlook. Additionally, New Zealand’s small, open economy remains vulnerable to external and environmental shocks, including commodity price volatility, tourism downturns, and natural disasters such as earthquakes and tsunamis.

New Zealand has run current account deficits for decades, largely due to a negative income and transfer balance. The current account deficit peaked at 9.0% of GDP in 2022 as strong import demand, weak tourism, and deteriorating terms of trade widened the trade deficit. Since then, the current account deficit narrowed, reaching 3.7% of GDP in the first quarter of 2026 (on a rolling 4 quarter basis). The improvement reflects stronger external demand, improved terms of trade, and weak import demand, all of which have helped to bring the trade deficit close to balance. Morningstar DBRS expects the current account deficit to slightly widen this year due to higher energy-related import costs, before narrowing gradually over the medium term. New Zealand’s small and open economy in tandem with its persistent current account deficit makes it vulnerable to external shocks. However, exchange rate flexibility continues to help the Kiwi economy adjust to evolving global conditions. While New Zealand’s net international liability position remains elevated at 43% of GDP (at the end of the first quarter of 2026), it has improved in recent years, and balance sheet risks from currency volatility appear limited. These mitigating factors, together with substantial net errors and omissions in New Zealand’s balance of payments statistics, support Morningstar DBRS’ one-category adjustment to the ‘Balance of Payments’ building block assessment.

Strong Governing Institutions Underpin New Zealand’s AAA Credit Ratings

New Zealand’s robust institutions and stable political environment are fundamental strengths of the sovereign credit profile. New Zealand is a stable, parliamentary democracy with effective governing institutions. The political environment is characterized by strong rule of law, low levels of corruption, and high regulatory quality. For over 80 years, governments have formed around either the Labour or National Party, reflecting the stability of New Zealand’s party system. New Zealand’s proportional voting system commonly results in coalition governments, requiring cooperation among coalition partners to pass legislation.

General elections will be held in early November, with the incumbent centre-right National-led government seeking a second term. The National Party governs in coalition with ACT New Zealand and New Zealand First, holding a combined total of 67 out of 122 seats. Polling for the upcoming election remains tight between the two major parties, leaving support of smaller parties likely pivotal for the next government’s formation. Economic conditions, cost-of-living pressures, and fiscal management remain the key issues shaping the current political landscape.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

There were no Environmental, Social, or Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (July 20, 2026) https://dbrs.morningstar.com/research/485522 [1].

For more information on the Rating Committee decision, please see the Scorecard Indicators and Building Block Assessments at https://dbrs.morningstar.com/research/487780 [2].

Notes: All figures are in New Zealand dollars unless otherwise noted. Public finance statistics reported on a general government basis unless specified.

Source: Public Service Association Te Pūkenga Here Tikanga Mahi

The National Party’s decision to rule out a bed tax over the weekend is an empty act of political theatre – and worse, bad economic policy, the PSA says.

“A bed tax would give councils much-needed revenue to fund the essential services that New Zealanders rely on in their local communities,” Public Service Association Te Pūkenga Here Tikanga Mahi national secretary, Duane Leo, says.

“Between this decision and the incoming rates caps, local government organisations will be forced to reduce their services, cut staff and introduce measures like user pays and privatisation.”

Leo points to a Standard & Poors Agency report from earlier this year that said New Zealand councils spend 90 per cent of their revenue on core services like roading, water, and other infrastructure.

“Local government has become a convenient scapegoat for people critical of so-called excessive public spending. But the reality is that there’s no more fat to cut in local government.

“Te Waihanga The New Zealand Infrastructure Commission already puts our national infrastructure deficit at $200 billion. If we don’t enable councils to invest in our infrastructure, we’ll see more and more catastrophic failures like Moa Point this last summer.

“At the end of the day, councils can’t magic money out of thin air.

“The PSA is urging all political parties and the future government to commit to a sustainable funding system so that councils can get on with running local communities and fixing critical infrastructure.”

The PSA represents 13,000 workers in local government organisations around the country.

The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.

Paula Bennett – SRW Brand Ambassador

Source: Tāhono Trust and Amnesty International Aotearoa New Zealand

This is a joint statement by Tāhono Trust and Amnesty International Aotearoa New Zealand on today’s announcement that the Government will introduce the Online Safety (Minimum Age and Child Safety Risk Assessment) Bill.

“For a long time, we along with many others across society, have been calling on the Government to provide greater safeguards for online safety based on tech company accountability, including a duty of care (including risk assessments), independent oversight, and penalties for non-compliance.

“We are pleased that it appears the Bill will introduce these requirements. The opportunity now is to extend these protections to everyone. Earlier this year Tāhono and Amnesty released an open letter that was signed by a major cross-sector coalition, from business to media, to community. The letter outlined the serious harm people across society are facing, from attacks to scams. We need action on online harm that addresses the broad range of harms and protects all people,” says Anjum Rahman from the Tāhono Trust.

“While expected, we continue to oppose a social media ban for under-16yr olds, included in the Bill. Our concern, shared by the Children’s Commissioner, is that an under-16 access ban, modelled on Australia’s law, addresses a symptom while leaving the underlying causes largely untouched.

“Requirements like risks assessments and independent oversight are the sort of changes that can make a real difference, but everyone should get the protection they afford. By extending these requirements to everyone, it could be the beginning of the transformation of online platforms into a positive force in our lives, which lives up to the potential we saw when the platforms first came into being,” says Lisa Woods from Amnesty International Aotearoa New Zealand.

Notes:

The Amnesty and Tāhono #NoHarmware campaign recommends:

• Transparency: Tech companies should clearly show how their algorithms work, like what content they recommend, what they remove, and how complaints are handled.
• Duty of care: Tech companies must actively try and make sure their products and services are safer by design. This means having strong checks to find risks and ways to reduce them.
• Independent oversight: There should be outside monitoring with the power to penalise companies that don’t follow the rules. Tech companies must also provide reports to show if they are following these rules.
• The Government’s obligations under Te Tiriti o Waitangi are upheld, with Māori genuinely involved in developing this regulation, and that people with lived experience of online harm are heard in shaping the final law.

To learn more about the #NoHarmware campaign and the impact online harm is having on human rights, visit: noharmware.nz

Source: Heritage New Zealand Pouhere Taonga

August 24

A documentary heritage collection that spans 123 years and reflects the lives of a prominent Kaipara family, has received formal recognition from UNESCO New Zealand (United Nations Educational, Scientific and Cultural Organization).

The Coates Family of Ruatuna – a collection that was the focus of a joint nomination by Heritage New Zealand Pouhere Taonga (HNZPT) and the Kauri Museum at Matakohe – has been inscribed into the Aotearoa Memory of the World Register. Both organisations are joint custodians of the collection and are delighted by the recent addition.

“The collection is unique in New Zealand and includes letters and personal papers, substantial runs of diaries, farm ledgers, accounts and stock books, photographs – including 88 glass plate negatives – photography albums, sketch books; you name it,” says Heritage New Zealand Pouhere Taonga Director Regional Services, Pam Bain.

“The papers centre around the Coates family who farmed at Ruatuna for 123 years. They show the development of farming and livestock breeding, interaction with tangata whenua, the work of women in both running and owning the farm, the family’s role in the community and the role locality played in shaping the interests and character of Gordon Coates, our first elected New Zealand-born Prime Minister.”

Gordon’s childhood growing up at historic Ruatuna – today cared for by Heritage New Zealand Pouhere Taonga – was a formative influence on his life.

Coates’ early social, sporting and military experiences, farming responsibilities, work in local politics and his awareness of Māori land issues influenced his approach to national politics. Known to be a pragmatist who got things done, he also developed close personal ties with Sir Āprirana Ngata and Te Puea Hērangi and set up a commission to investigate the confiscation of Māori land after the wars of the 1860s.

“The collection includes many items associated with Gordon Coates both at Ruatuna and the Kauri Museum, with both coming together to tell the full story,” says Pam.

One of the oldest items in the collection includes a letter written by James Patten, the great-grandfather of first-generation settler Eleanor Coates. Patten was a doctor travelling with Cook on HMS Resolution. The collection also includes an English translation of the Quran printed in 1688.

In addition the collection comprises documents relating to Ada Coates – farmer, landowner, breeder of pedigree stock, horsewoman and tireless worker in her brother’s electorate office; and who bought the homestead and farm block from the estate of her mother, Eleanor.

Joy Aickin – Ada’s niece – carried on the mantle of community service and farming at Ruatuna until her death in 2000.

The Coates Family of Ruatuna is a rich collection of over 3500 items documenting 123 years of family, farming and community – as well as the family’s personal triumphs and calamities.

“The Coates Family of Ruatuna collection is nationally significant, but its power comes from being rooted in place,” says Kauri Museum Chair Hinurewa te Hau.

“Preserving this collection protects the memory of Kaipara and gives people a way to understand the people, experiences and changes that have shaped this community over time. Our histories and stories give us a sense of place and belonging, and we are delighted to see this collection recognised through the Aotearoa Memory of the World Register.”

The Aotearoa Memory of the World Register includes 59 inscriptions of nationally and internationally important documentary heritage collections in New Zealand including Te Tiriti o Waitangi, the Women’s Suffrage Petition and the first book published in te reo Māori.

Heritage New Zealand Pouhere Taonga has two other inscriptions in the Aotearoa Memory of the World Register – the Kerikeri Mission Te Reo slates and the Clendon Papers.

Source: Médecins Sans Frontières

24 August – As we reach 100 days since the Ebola disease outbreak was declared in Democratic Republic of Congo (DRC), Médecins Sans Frontières (MSF) warns that communities are not receiving adequate support to contain the disease. This outbreak has become the largest and deadliest in the country’s history, and it continues to spread at an alarming rate within communities who already contend with conflict, violence, displacement, and hunger, among other health emergencies, in their daily lives.

Training for health workers and community leaders on case detection, referrals, and infection prevention and control measures must be urgently bolstered within communities affected by the outbreak.

Over the past week, deaths due to Ebola disease have been reported at a rate of roughly one every half hour. Since the outbreak began and as of 16 August, national authorities have reported more than 5,000 confirmed cases and over 2,400 deaths.

“This epidemic continues to spread, moving faster than the response can keep up,” says Dr Javid Abdelmoneim, International President of MSF. “Treatment centres remain essential for saving lives, but this response needs more than extra beds. It needs better detection, safe isolation for sick people and their contacts, and support to health workers. People seeking care in existing health facilities also need to be protected from infection. Crucially, the response must be built with communities, not around them.”

In Rho displacement camp, near Drodro, Ituri, community leaders have worked with MSF to encourage people with symptoms to seek testing, isolation and treatment early. They also promote infection prevention and control measures to reduce the risk of community transmission. In the overcrowded camp, which is home to nearly 50,000 people, this collaboration has helped limit the spread of Ebola and reduce mortality.

“We know our communities and how to reach our people,” says Ezrome Kiza Lumani, a community leader living in the camp. “When Ebola arrived, we did not wait. We spoke with families, listened to their fears, and encouraged people with symptoms to seek care. We have a crucial role to play in stopping this outbreak.”

Since the outbreak was officially declared, more than 60 per cent of Ebola disease deaths in DRC have occurred outside – and often far away from – Ebola treatment centres. This means many people are dying at home or in their communities without receiving care, and the virus continues to spread before cases are detected. Worryingly, case numbers are rising rapidly beyond the epicentre of Ituri, with North Kivu province experiencing particularly high levels of mortality and mistrust in the response.

“With cases emerging in new areas with little or no previous experience managing Ebola disease, Ebola-trained healthcare workers are urgently needed not only inside treatment centres, but also directly in affected communities,” says Trish Newport, MSF’s emergency programme manager in Ituri province.

MSF is currently responding across Ituri, North Kivu, South Kivu, Tshopo, and Haut-Uélé provinces. Teams are operating six Ebola treatment centres, as well as isolation units, in affected areas, with more than 400 beds available — representing one third of all beds in the overall response. More than 1,400 MSF staff are supporting the response. Since the start of the outbreak, our teams have admitted more than 2,000 patients, of which more than 800 patients were confirmed to have Ebola disease.

In Beni, North Kivu province, we have worked to move our response within communities. Through supporting existing health facilities that also offer general healthcare services, which are also crucial to saving lives, systematic and symptomatic treatment can start quickly. Across the response to the outbreak in DRC, more must be done to ensure people can receive the care they need closer to home.

“Health workers and community leaders need training to help detect cases early, refer people safely, reinforce infection prevention and control, and protect themselves and others from infection,” says Newport. “The World Health Organization (WHO), other UN agencies, humanitarian organisations, including MSF, and the Congolese Ministry of Health must urgently expand this training and support.”

Community leaders like Emery Guba Mateso, also from Rho displacement camp, are sharing their experiences to encourage people to seek care. He lost his son to the disease and later survived an infection himself.

“As a person who has recovered from Ebola disease, the message I would like to share with the community is: as soon as the first symptoms appear, it is important to seek medical care promptly, because early access to appropriate treatment increases the chances of recovery,” says Guba Mateso.

MSF is an international, medical, humanitarian organisation that delivers medical care to people in need, regardless of their origin, religion, or political affiliation. MSF Australia was established in 1995 and is one of 24 international MSF sections committed to delivering medical humanitarian assistance to people in crisis. Every year more than 120 Australians and New Zealanders go on assignment with Médecins Sans Frontières working as: doctors, midwives, psychologists, laboratory technicians, human resource/finance coordinators, pharmacists, mental health specialists and logisticians. MSF delivers medical care based on need alone and operates independently of government, religion or economic influence and irrespective of race, religion or gender. For more information visit msf.org.au

Decontamination teams visit the home of an Ebola patient. They are accompanied by a family member waring personal protective equipment who shows them around the different rooms.