UPDATE 1-Chile central bank cuts 2013 GDP view, 2014 forecast similar
* GDP growth forecast at 4.0 to 4.5 percent in 2013, 4.0 to 5.0 in 2014
* Bank maintains domestic demand and inflation forecasts
* Copper price expected to be $3.30/lb in 2013, $3.05/lb in 2014
SANTIAGO, Sept 4 (Reuters) - Chile's central bank cut its forecast range for 2013 gross domestic product growth but maintained inflation and domestic demand predictions as the effects of a slowdown hitting the top copper exporter are moderated by buoyant consumer spending.
The bank anticipates the economy of Chile will expand between 4 and 4.5 percent this year, compared to a prior projection of between 4 and 5 percent, according to the bank's quarterly Monetary Policy Report (IPoM) published Wednesday.
The bank also estimated growth in 2014 of between 4 and 5 percent and maintained its 2013 domestic demand forecast at 4.9 percent.
"The healthy slowdown in activity that we were expecting is materializing. However, consumer spending continues to show an elevated dynamism, encouraged by labor market conditions," Central Bank President Rodrigo Vergara said in presenting the report to the Senate.
In July the International Monetary Fund estimated growth in Chile would slow to 4.6 percent from last year's 5.6 percent as copper prices fell and investment cooled.
However, the Andean economy has shown signs of resilience recently, with data on unemployment and manufacturing surprising on the upside.
The jobless rate in May to July hit its lowest since records using the current methodology began in 2010.
The bank also forecast on Wednesday that inflation in 2013 would be 2.6 percent, rising to 2.8 percent in 2014, just under the midpoint of the bank's annual inflation target range of 2 to 4 percent.
On Friday, Chile is due to release inflation data for August.
The bank said it sees the price for copper, which makes up over half of Chile's export revenue, dropping from an average $3.30 per pound this year to $3.05 in 2014.
The price of copper has fallen this year on fears of slowing demand from key buyer China, troubles in Syria and the expected withdrawal of stimulus by the U.S. Federal Reserve.
The bank's forecasts assume a base-case scenario of the benchmark interest rate following a path similar to what the market expects, the report added.
Before the recent run of positive data, traders had been expecting the bank to hold its benchmark rate steady at 5 percent in September and then cut in the next three months.
The rate has been on hold since January 2012, though minutes show the bank has weighed a cut at its last four monetary policy meetings.
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