Brazil's retail sales beat forecasts, hit record high in March

SAO PAULO, May 13 (Reuters) - Brazil's retail sales volumes beat expectations and reached a record high in March, data from statistics agency IBGE showed on Wednesday, though high borrowing costs continue to restrain a broader recovery.

• Sales rose 0.5% in March from the previous month, while economists polled by Reuters had expected no changes

• It was the third consecutive monthly increase, with five of eight sectors posting gains

• Andres Abadia, chief Latin America economist at Pantheon Macroeconomics, said the recovery remains gradual rather than broad-based

• "Tight credit conditions and still-elevated interest rates continue to weigh on big-ticket purchases and cap the pace of expansion," he said

• Brazil's central bank last month cut its benchmark interest rate by 25 basis points for a second straight meeting to 14.50%

• On an annual basis, retail sales rose 4.0% in March, well above expectations for a 2.75% increase in the Reuters poll