09:20 AM EDT, 09/03/2024 (MT Newswires) -- Chile's central bank (BCCh) is due to deliver a 25bps rate cut to 5.50% at 6 p.m. ET Tuesday after it chose to leave rates unchanged at its late-July decision, said Scotiabank.

Despite a beat in monthly economic activity data for July released on Monday, the BCCh is on track to resume cuts Tuesday -- to then maybe skip a cut in October -- as labor markets show signs of slowing, while the peso's (CLP) resilience and the start of United States Federal Reserve cuts in two weeks allows the BCCh to reduce the degree of policy restriction, stated Scotiabank.

After Monday's gross domestic product (GDP) beat, financial markets are assigning about a 70% chance of a cut on Tuesday, while roughly three-quarters of economists polled by Bloomberg expect a cut, according to the bank.