UPDATE 1-Peru president elect says central bank chief Velarde to stay in job

(Adds details throughout, comments from president-elect, future finance minister)

LIMA, July 11 (Reuters) - Peru’s central bank chief Julio Velarde has agreed to stay on as or a third five-year term after the country’s upcoming government handover, President-elect Pedro Pablo Kuczynski said on Monday.

Velarde, widely respected in Peru and abroad, has been the president of the central bank since former President Alan Garcia appointed him in 2006. Outgoing President Ollanta Humala reappointed him in 2011.

“We have reconfirmed that he will stay on,” Kuczynski told reporters.

Kuczynski announced that the 64-year-old Velarde had agreed to stay on for another term after a meeting with Alfredo Thorne, the former JPMorgan Chase director who has been named his finance minister, and Fernando Zavala, his future prime minister.

Velarde has previously praised Kuczynski and his pick for finance minister and said the economy would be in good hands after the president-elect takes office on July 28.

Thorne said Monday that he had “a lot of ideas in common” with Velarde and committed himself to working with the central bank chief.

“As you know, somewhat more complex times are nearing from abroad and the central bank has done a great job and we have to maintain that credibility,” said Thorne.

Velarde has said the central bank’s growth outlook for coming years might get a boost during Kuczynski’s term. The bank last month forecast an expansion of 4.0 percent this year and 4.6 percent in 2017 before an expected slowdown to 4.2 percent in 2018. (Reporting by Marco Aquino; Writing by Anthony Esposito; Editing by Cynthia Osterman)