MPC divided as BoE deputy close to voting for rate rise

There are clear signs of a rift within the MPC over interest rates as deputy governor Paul Tucker said he is close to voting for a rise.

This would put him at loggerheads with governor Sir Mervyn King, according to the Telegraph. A vote for higher rates from Tucker, widely considered the favourite to succeed Sir Mervyn in 2013, would be a key moment. Economists believe he would take other members of the Monetary Policy Committee (MPC) with him, while sending a clear signal to markets the era of historically low rates was over, the Telegraph reports. His comments to the Treasury Select Committee (TSC) came as the Office for National Statistics (ONS) revealed families are under greater pressure than at any time in the...