King: 'It now seems likely the UK economy is entering a recession'
The Bank of England governor and an influential think tank have predicted that the UK economy is likely to sink into recession in 2009.
Mervyn King told business leaders in Leeds he was concerned about rising unemployment and falling house prices.
Meanwhile, the National Institute of Economic and Social Research said the UK was on the brink of its first full year of recession since 1991.
Economic fears sent the pound plunging to a five-year low against the dollar.
