Venezuela's Chavez launches mild economic plan

Venezuela's President Hugo Chavez on Wednesday eliminated a tax on financial transactions and loosened currency controls in a mild bid to revitalize the economy, which has slowed despite record oil prices. Inflation soared in the OPEC-country last month, in spite of efforts this year to soak up extra liquidity, and growth slowed to 4.8 percent for the first quarter. Chavez said inflation, at 12.4 percent in January-May compared with a year earlier, was a worry but that he would not cut spending on social projects to tackle prices. 'We will fight inflation but we will not put the brakes on the economy,' he said at an event attended by the country's top businessmen.