UPDATE 2-Brazil cenbank signals stable rate, does not rule out hike
(Recasts with central bank director comments and rewrites throughout)
By Alonso Soto
BRASILIA, Sept 29 (Reuters) - Brazil's central bank on Monday signaled it will keep interest rates on hold for some time, but warned that policymakers would not hesitate to tighten monetary policy if inflation fails to subside.
Carlos Hamilton de Araujo, the bank's director of economic policy, told reporters the bank is only considering raising or keeping its benchmark Selic rate on hold.
"If the inflation outlook requires it, monetary policy should be and will be promptly triggered," said Araujo.
Earlier on Monday the central bank said it expected inflation to slowly ease toward the center of the government's target in coming years, suggesting no need to adjust rates at this moment.
The central bank has kept interest rates steady for three straight monetary policy meetings, resisting pressure to stimulate a slowing economy ahead of Sunday's presidential elections.
Sluggish growth and high inflation are some of the main concerns for Brazilians in an election that has pitted President Dilma Rousseff against two pro-market candidates who blame her for sinking the economy into recession.