Brazil economic activity beats expectations in February

BRASILIA, April 16 (Reuters) - Brazil's IBC-Br economic activity index rose a seasonally adjusted 0.6% in February from the previous month, the central bank said on Thursday, above the 0.47% rise forecast in a Reuters poll of economists.

BY THE NUMBERS

* The index, a proxy for gross domestic product (GDP), was driven by strong industrial output, which expanded 1.2% from January, the central bank said.

* The indicator also reflects monthly gains in agriculture (+0.2%), services (+0.3%) and production-related taxes (+0.8%), based on central bank estimates.

* In 12 months, the non-seasonally adjusted index rose 1.9%.

CONTEXT

* The data came as policymakers assess the pace of economic cooling ahead of their next monetary policy meeting on April 28-29.

* The central bank began an easing cycle in March with a 25-basis-point cut, lowering the benchmark interest rate to 14.75% from a nearly 20-year high sustained since July.

* Monetary policy director Nilton David said on Wednesday that policymakers intend to keep monetary policy in restrictive territory, underscoring a commitment to bringing inflation back to the 3% target.

* Twelve-month inflation rose to 4.14%, above market expectations, driven by higher transport costs, particularly gasoline, amid the U.S.-Israeli war on Iran. (Reporting by Marcela Ayres, Editing by Louise Heavens)