Pope Benedict XVI today hailed the progress in inter-faith dialogue between Christians and Muslims, underlining its importance for world peace.

The pontiff was speaking while receiving leaders of other faiths at the Vatican.  

The new leader of the Roman Catholic Church, who was inaugurated as the 265th pope yesterday, said he particularly wanted to recognise the presence of the Muslim community at his inaugural mass.

He said: 'I appreciate the progress in dialogue between Muslims and Christians.'