UPDATE 1-Brazil on right path, Q2 GDP good news-Meirelles

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BRASILIA, Sept 11 (Reuters) - Brazil's faster-than-expected economic expansion in the second quarter is good news, showing the government's policies are working and should be maintained, central bank chief Henrique Meirelles said on Friday.

The country is on the right path, Meirelles said at a news conference, and it's "not the time to lower our guard."

Government actions to confront the crisis were "taken in the right measure, at the right time," he said.

Brazil needs to maintain a favorable economic climate for the quick return of investment, Meirelles said, as well as continue to accumulate reserves.

"In short, to maintain the policies that are working," he added.

Brazil's gross domestic product expanded 1.9 percent in the second quarter from the first three months of the year, faster than the 1.6 percent median forecast in a Reuters survey.

That growth lifted Brazil out of a recession after the economy shrank for a second straight quarter in the first three months of the year.

(Reporting by Isabel Versiani and Elzio Barreto, Writing by Luciana Lopez; editing by Stuart Grudgings)