(Refiles to remove extraneous word in paragraph 6) (Updates with bourse close)

By Alexia Vlahos

SANTIAGO, May 13 (Reuters) - Chilean shares closed weaker on Wednesday, as the central bank cut its economic forecast and investors sold stocks to lock in profits from recent gains, while the peso also slipped, traders said.

The IPSA .IPSA blue-chip share index closed 1.1 percent weaker at 2,900.22 points, preliminary closing data showed, while the all-market IGPA index .IGPA closed 0.85 percent weaker at 13,736.85 points. The IPSA is now up 22 percent so far in the year-to-date.

"We are following the international markets a bit and there is also some profit-taking," said Roberto Guzman, head of investment at the FIT Research brokerage in Santiago.

Soquimich SQM_pb.SN, Chile's leading exporter of fertilizer and the world's biggest producer of iodine and lithium, fell 1.79 percent to 18,722 pesos a share.

Industrial conglomerate Copec COP.SN, the most heavily weighted share on the bourse, fell 2.54 percent to 6,434.40 pesos.

Chile's central bank on Wednesday in its thrice yearly Monetary Policy Report slashed its 2009 economic forecast to a range between a 0.75 percent contraction and an expansion of 0.25 percent as the global crisis hits exports and consumer spending.

"The Monetary Policy Report was all as expected," Guzman added.