Brazil central bank steps up rate hikes, urges fiscal measures

By Marcela Ayres

BRASILIA, Nov 6 (Reuters) - Brazil's central bank raised interest rates by 50 basis points on Wednesday, quickening the pace of tightening from September and stressed the importance of fiscal discipline in the face of a more challenging inflation outlook.

Coming on the heels of Donald Trump's victory in the U.S. presidential race, the Brazilian central bank's decision cited uncertainty about the United States economy as the main factor clouding its global outlook.

The bank's rate-setting committee, known as Copom, voted unanimously to lift its benchmark Selic rate to 11.25% as forecast by 30 of 34 economists in a Reuters poll.

Copom also stepped up calls for the government to show the credibility of its budget targets, warning in a policy statement that "the perception of agents about the fiscal scenario has significantly impacted asset prices and expectations" and flagging the benefits of "the presentation and execution of structural measures for the fiscal budget."

Growing concerns about Brazil's rising public debt have weakened the Brazilian real in recent months and pushed up long-term interest rates.

The government of leftist President Luiz Inacio Lula da Silva signaled that it would present measures this week to curb spending and strengthen fiscal rules passed last year.

Finance Minister Fernando Haddad said on Wednesday that

talks on the matter

were finalized and all ministers are aware of the need to "ensure predictability and sustainability of finances in the medium and long term." (Reporting by Marcela Ayres Editing by Brad Haynes)