Chile peso firms, inflation seen staying rate cut

SANTIAGO, Nov 5 (Reuters) - Chile's peso was firmer at the Wednesday midsession, as investors bet that unexpectedly high October inflation data would force the central bank to hold interest rates and possibly even raise them, traders said.

The peso CLP=CL CHILJ was 1.37 percent firmer at 629.70/630.00 per dollar, after closing 3.3 percent firmer on Tuesday.

Chile's consumer price index rose 0.9 percent in October, with 12-month annual inflation hitting 9.9 percent -- the fastest pace since 1994.

Traders had been expecting the central bank to hold rates until next year, and had been betting that the next move may then be a rate cut. (Reporting by Froilan Romero; Editing by James Dalgleish)