U.K. Chancellor of the Exchequer George Osborne raised 2012 growth forecasts to 0.8% from November's estimates of 0.7% in his annual budget presented to Parliament, where he promised to avoid recession while keeping austerity push, referring that there was no need for further fiscal tightening by the government.

Osborne cuts 2012-2017 deficit forecast by 11 billion pounds, where he expects deficit to fall to 7.6% of GDP next year.

Hesays U.K. net debt to mushroom to 76.3% of GDP in 2014-2015, while budget deficit will reach 120 billion pounds in 2012-03 and 126 billion pounds in 2011-12.

Regarding long-lasting gilts, he said he will consult for perpetual gilts with no fixed redemption data.