SANTIAGO, Sept 1 (Reuters) - Chile’s Central Bank on Wednesday revised upwards its prediction for 2021 GDP growth to 10.5% to 11.5% from a previous estimate of 8.5% to 9.5% amid what it called the country’s “rapid recovery” from a recession caused by COVID-19. The bank said it saw average inflation for 2021 at 4.2% compared to the 3.9% it predicted previously. On Tuesday the bank doubled the benchmark interest rate to 1.5%. It said in its quarterly IPOM economic report on Wednesday it would continue to withdraw monetary stimulus, with the rate returning to a neutral level by mid-2022. (Reporting by Fabian Cambero and Aislinn Laing; editing by John Stonestreet) Our Standards: The Thomson Reuters Trust Principles.