Brazil central bank holds rates, flags Lula fiscal worries

BRASILIA (Reuters) - Brazil's central bank on Wednesday kept interest rates at 13.75% for the third consecutive policy decision, highlighting fiscal uncertainties arising from a spending boost planned by leftist President-elect Luiz Inacio Lula da Silva.

The decision by the bank's Copom rate-setting committee was the first since Lula's Oct. 30 election victory. The decision to hold its Selic benchmark interest rate was expected by 31 of 32 economists polled by Reuters.

(Reporting by Marcela Ayres)