UPDATE 2-Brazil central bank may adjust monetary policy -director

martes 18 de noviembre de 2014 15:22 GYT

(Adds Araujo comments and context)

By Alonso Soto

FLORIANOPOLIS, Brazil Nov 18 (Reuters) - Brazil's central bank could fine-tune monetary policy to fight high inflation, director Carlos Hamilton Araujo said on Tuesday, leading investors to bet interest rates might rise more sharply in the next few months.

Araujo, the central bank's director of economic policy, said policymakers will not be complacent about inflation, although he admitted that economic growth has lagged its potential.

"If necessary, the (central bank) may recalibrate monetary policy in order to ensure a benign inflation outlook," Araujo said at a bank event in the southern city of Florianopolis.

Yields paid on long-dated contracts for interest-rate futures <0#2DIJ:> fell further after Araujo's comments, as traders said a more aggressive monetary tightening cycle now would make room for lower interest rates in the future.

The central bank shocked markets by raising interest rates on Oct. 29 by 25 basis points to 11.25 percent after a sharp depreciation of the Brazilian real accelerated already-high inflation.

The surprise hike was seen as a signal that newly reelected President Dilma Rousseff could adopt more market-friendly policies during her second term that starts on Jan. 1.

Since she won re-election on Oct. 26, Rousseff has kept markets guessing who she would pick as next finance minister and any other changes she would make to her economic team.   Continuación...