07:54 AM EDT, 07/29/2025 (MT Newswires) -- Chile's central bank (BCCh) is widely expected to resume easing by cutting its overnight rate by 25bps to 4.75% on Tuesday at 6 p.m. ET, said Scotiabank.

At its June meeting, BCCh noted that "If the central scenario of the June IPoM [ed. Monetary Policy Report] materializes, in the following quarters the MPR [ed. Monetary Policy Rate] will be approaching its range of neutral values," which ranges between 3.5% to 4.5%. At 4.75%, BCCh has a way to go before approaching the midpoint, noted the bank.

Softening inflation and growth readings offer additional cover for easing at this meeting and so does the threat of United States copper tariffs, pointed out Scotiabank.

Brazil's central bank (BCB) is widely expected to maintain its Selic rate at 15.0% on Wednesday, according to Scotiabank.

Inflation remains elevated and so do inflation expectations, added the bank. BCB may think that the resumption of a tightening cycle that began last September and took the Selic rate up by 450bps to 15.0% -- its highest since 2006-needs to be given more time to work through the economy and bring inflation lower.

The new wrench in the works is President Donald Trump's politically motivated threat to impose a 50% tariff on Brazilian exports to the U.S. unless the Lula administration ceases its prosecutor efforts of former President Jair Bolsonaro, who is accused of playing a role in a coup attempt aimed at invalidating the election results when he lost.

Brazil has threatened to retaliate if Trump proceeds this Friday. The net impact of bilateral tariffs on growth and inflation depends upon the course of events on this matter, which may mean forward guidance could be rather reserved.

Colombia's central bank (BanRep) is widely, but not unanimously, expected to cut its overnight lending rate by 25bps to 9.0% on Thursday, said Scotiabank.

There was already somewhat of a bias toward easing among some members at the last meeting on June 27, when BanRep held, but with a split vote somewhat in favor of easing, noted the bank. Downside risks to growth stemming from U.S. trade policy, softer but not soft recent core inflation (4.9% year over year), lower but not low inflation expectations, and a significantly restrictive policy stance are likely to be conveyed as justification for easing but with a careful forward bias, according to the bank.