US Fed leaves interest rates steady
Washington: In a widely expected decision the U.S. Federal Reserve left interest rates unchanged at 5.25 pc but said it remained concerned about inflation.
US officials said that "future policy adjustments would depend on the evolution of the outlook for both inflation and economic growth," marking a change from January, when the Fed had said "the extent and timing of any additional firming that may be needed" would depend on the outlook.

Financial markets took the new language as opening the door to lower interest rates.

The U.S. stock prices jumped higher and the blue chip Dow Jones industrial average closed up 159 points.
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UK Budget: corporate taxes cut, expenditure tightened
London: Gordon Brown UK's Finance Minister has cut corporate taxes in his 11th budget and announced measures to help families tighten expenditure. Laying emphasis on education and training schools in UK will get billions of pounds to upgrade facilities.

Brown told the parliament that the would expand prosperity and fairness for Britain's families - and was built on the foundation of the longest period of economic stability and sustained growth in the country's history.

Brown told Parliament that headline corporation tax would be cut to 28 pc from 30 pc from April 2008, in a bid to fight accusations that Britain is losing competitiveness. Business groups have clamoured for lower corporation taxes to keep Britain competitive in a rapidly globalising economy. In a range of policies aimed at reducing Britain's carbon dioxide emissions, Brown raised duty on petrol for the second time in three months after a 3-1/2 year freeze and increased road levies on the most polluting cars, such as 4x4s.
He also announced an extra 400 million pounds ($782.9 million) of defence spending and 86 million in security and counter-terrorism funds.

The British economy is expected to grow by around 3 pc this year - the most in four years and better than any other Group of Seven country. Brown said UK would grow between 2.5 and 3.0 pc in the coming two years and inflation rate would fall to the government's 2 pc goal this year and remain on target in 2008 and 2009.

However, after 10 years in power, the ruling Labour party is trailing behind the Tories in the polls, mainly due to popular anger over the Iraq war and a series of personal and financial scandals.
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