The Governor of the Bank of England has given his most downbeat assessment yet of Britain’s economy by admitted that Britain is heading into a recession.

Speaking at a conference in Leeds, Bank of England Governor Mervyn King admitted that the combination of a stagnant credit market and rising costs of living meant that the UK was at risk of a “sharp and prolonged” economic slowdown and that the UK is now “entering a recession.”

Those economic fears sent the pound plummeting to a five year low against the US Dollar, now trading at $1.63.