Review the Bank of England's remit to separate supply and demand inflation
We call on the Government to update the Bank of England's monetary policy remit to require the MPC to distinguish between demand-pull and supply-push inflation, and permit base rate cuts even when headline inflation exceeds target, if the cause is primarily supply-side.
Signatures
12
signatures
Government response threshold (10,000) · 12/10,000
Debate threshold (100,000) · 12/100,000
- 07 MAY 2026Petition opened for signaturesCreated by Luther Yeates
Background
The Bank of England's current remit requires it to target a CPI inflation rate of 2%, with interest rate policy used as the primary tool to achieve this. This framework was designed for an era of predominantly stable, demand-driven inflation. It does not adequately account for inflation driven by supply-side shocks — such as energy price spikes, global supply chain disruption, or geopolitical events — which cannot be meaningfully resolved by raising the cost of borrowing.