Brazil's industrial output beats expectations in April, rises for 4th month

SAO PAULO, June 3 (Reuters) - Industrial production in Brazil exceeded market expectations in April, data from statistics agency IBGE showed on Wednesday, expanding for a fourth consecutive month despite tight monetary conditions.

* Output rose 0.7% in April from March, while economists in a Reuters poll had expected a 0.4% increase.

* Production expanded in two of the four main categories surveyed, IBGE said.

* Extractive industry, along with oil products and biofuels, were the main drivers in the month.

* Output was up 2.7% year-on-year in April, versus a 1.7% rise forecast by economists in the Reuters poll.

* "Despite the recovery in recent months, industry is still showing subdued performance in segments most sensitive to monetary policy," Daycoval economist Antonio Ricciardi said.

* Brazil's central bank lowered its benchmark interest rate by 25 basis points at each of its last two meetings, but borrowing costs remain at a restrictive level of 14.50%. (Reporting by Gabriel Araujo Editing by Bernadette Baum and Chizu Nomiyama )