Economy Update

Desmond Swayne Excerpts

Thursday 26th May 2022 Commons Chamber

[Rishi Sunak]

My hon. Friend the Economic Secretary to the Treasury is in regular dialogue with the Financial Conduct Authority to ensure that the industry is properly regulated. Last year, we also introduced the breathing space programme, for which he deserves enormous praise and which we continue to believe will help people. It provides a space where all statutory debt repayments are paused to allow families time to work through them, with the benefits that that brings.

[Sir Desmond Swayne (New Forest West) (Con)]

What difference in monetary policy has protected Japan and Switzerland from the levels of inflation that we are encountering here, in the United States and in the rest of Europe?

[Rishi Sunak]

Japan, as my right hon. Friend will appreciate, is a very particular case, but even Japan is experiencing its highest relative inflation rate in many years. For Switzerland, there are a couple of reasons. The first is a particularly strong Swiss franc, which happens at times like this. The second is a different mix of energy, which I believe from memory is provided overwhelmingly by hydro and nuclear. That is a completely different energy mix, which means that Switzerland suffers less from the shock we are experiencing.