The election campaign for the Tories has been a disaster so far. Polling data shows they’re rapidly losing vote share, and Rishi Sunak can’t open his mouth without hurting his chances. Despite that, he might have a few reasons to be cheerful.
Inflation Data Looking Good
We expect the UK inflation rate to drop to the Bank of England target of 2% when the Mya figures are announced. Whilst this isn’t thanks to the government, they’ll surely leap on the good news.
Lower Inflation Has a Feel-Good Factor
Although the benefit of lower inflation doesn’t feel dramatic, it helps when you’re not feeling the price of EVERYTHING is going up weekly.
Sunak Will Use the News
Expect the Tories to use the data as proof that their ‘plan for the economy is working’. In contrast, it has more to do with stabilising supply chains and material prices.
Interest Rate Cuts
Whilst experts aren’t predicting an imminent interest rate cut, good economic data is expected soon. That data will hint towards a rate cut within a few months, and that will help millions.
Lower Interest, More Cash
With interest rates at their highest in almost 20 years, a cut would be timely for many of us. Lower borrowing rates would see many people better off.
Rebuild of Trust Helps
Suppose the Tories get the double-whammy of lower inflation data and a suggestion of a Bank of England base rate cut. In that case, they’ll be delirious with excitement. It’ll give them more ammo for their ‘our plan is working’ line.
Stock Market Size
The London Stock Exchange recently re-took the title of the largest stock exchange in Europe by value.
Market Measured by Company Value
Data from Bloomberg reports that companies listed on the London Stock Exchange reached $3.18 trillion on Monday, overtaking the $3.13tn total value of companies listed in Paris.
Doesn’t Say Much About the UK Economy
While this looks great for the UK economy, large companies are trading worldwide. Only their shares are available to buy and sell in the UK.
It’ll Help Pension Funds
Many people and pension funds are invested in the whole market. Hence, as it increases in size and value, people are technically wealthier.
In Desperate Times, It’s Good News
At a time when economic data doesn’t look good, the government will still use it as proof that the UK remains a great place to anchor businesses and invest your money.
International Football Tournaments
A desperate government will jump on ANY good news. If the England and Scotland football teams, expect to see a smiling Sunak in many pictures with the players.
National Feel-Good Factors
Politicians will ride the wave of good feelings because people naturally associate an excellent mood with positive feelings about the nation’s state. The Tories will desperately hope the football teams do well.
Ukraine Tide Turning
One issue where Sunak can take credit is the leading role in helping Ukraine. The UK remains one of the biggest donors of military support to Ukraine.
Coalition Pulling Together
Now, the US is contributing more aid, and the international community is bonding more tightly over the issue; it’s helping catapult the UK back to the top table on the world stage.
Working Together Is Working for Ukraine
The additional military support is helping to slowly reverse some of the territorial gains made by Russia, whilst Western support was slow in arriving.
Change Expected This Summer
There’s a feeling amongst military experts that the summer could see Ukraine back on the front foot, with fighter jets arriving from Western partners.
Probably Too Little, Too Late
It’s doubtful that this good news won’t save Rishi his job, but it’ll help to provide him with a bit of hope in the short term.
The post Finding Positives: Sunak’s Silver Linings in Tough Times first appeared on Now Buzz.
Featured Image Credit: Shutterstock / Gints Ivuskans.