Chile cenbank seen holding key rate steady in May

SANTIAGO May 12 (Reuters) - Chile's central bank is seen holding its benchmark interest rate steady at 0.5 percent in May in the wake of a devastating earthquake, the bank's fortnightly poll of senior traders and financial players showed on Wednesday.

However, many expect the bank to start raising its rate starting in June or July, and the poll sees the bank's benchmark rate at 2.25 percent in 6 months' time and 3.5 percent in 12 months' time.

On inflation, the poll's expectations were that consumer prices would rise 0.4 percent in May. The peso currency was forecast to trade at 520 per dollar at the end of 2010. (Reporting by Antonio de la Jara. Writing by Simon Gardner; Editing by Padraic Cassidy)