UPDATE 1-Brazil hikes interest rates, signals push into "restrictive" range
(Adds details from policy statement, economic context)
BRASILIA, Sept 22 (Reuters) - Brazil's central bank on Wednesday raised interest rates by 100 basis points for the second time in a row and flagged a push into a "restrictive" range as it battles surging inflation with the world's most aggressive monetary tightening.
The bank's rate-setting committee, known as Copom, decided unanimously to raise its benchmark rate to 6.25%. Twenty-five of the 35 economists polled by Reuters had forecast the move, with nine predicting an even more aggressive rate hike.
Copom signaled another increase of the same size next month, outlining in its policy statement plans "to advance the process of monetary tightening further into the restrictive territory."
The move puts Brazil on the front line of a global battle against climbing consumer prices, lifting its benchmark rate from a record-low 2.00% at the start of the year as 12-month inflation flirts with double digits.
A weakening currency and doubts about Brazil's fiscal outlook have forced the central bank to take a hardline approach, many economists say. Growing expectations of a rate hike next year by the U.S. Federal Reserve have added to pressure on emerging markets.
However, some warn the sharp tightening in Brazil will choke off an economic rebound in Latin America's biggest economy, killing growth and encouraging more populist policies from President Jair Bolsonaro as he seeks re-election in 2022. (Reporting by Marcela Ayres Writing by Brad Haynes Editing by Stephen Eisenhammer)
