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'Sustained downturn' fear

The banking crisis has heightened the risk of a severe UK recession, a Bank of England rate-setter warned.

Monetary Policy Committee member Andrew Sentance said it is "more likely than not" the UK would fall into recession in the second half of 2008.

But the risks of a "sustained downturn" for the economy similar to recessions of the mid-1970s, early 1980s and early 1990s have increased, he said.

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