As official statistics yesterday showed that real disposable income in the first three months of the year suffered their sharpest annual squeeze since 1977, Paul Tucker, the Bank's deputy governor, revealed he is close to voting for a rate rise – putting him at loggerheads with Sir Mervyn King, the Governor. A vote for higher rates from Mr Tucker, widely considered favourite to succeed Sir Mervyn in 2013, would be a key policy moment. Economists reckon he would take other members of the Monetary Policy Committee (MPC) with him, while sending a clear signal to markets that the era of historically low rates was over. ... (full story)