The Cuban President, Raul Castro, is due to address the nation shortly in a televised keynote speech in which he may outline further economic reforms.
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Mr Castro has introduced significant changes in the country since succeeding his ailing brother, Fidel, in February.
He recently announced a move to allow some private farming and relaxed limits on mobile phones and computers.
'Excessive prohibitions'
The BBC's Michael Voss in Santiago says 26 July, known as Rebellion Day, is traditionally used to announce major policy changes.
There is anticipation here that President Castro might outline a further loosening of state economic controls, our correspondent says.
But with rising world oil and food prices there are also fears that there may also cuts to the communist country's generous welfare state, he adds.
Since taking over from his elder brother, Mr Castro has made available more unused state land to private farmers, eased restrictions on mobile phones for ordinary citizens and allowed some workers to seek legal titles for their homes.
He has also signed UN human rights accords and announced that workers can earn productivity bonuses, doing away with the egalitarian concept that everyone must earn the same.
Most of the speculation is based on the president's promise earlier this year to remove "excessive prohibitions" in Cuban life.
Mr Castro will address a crowd of some 10,000 people at the parade grounds of Santiago's historic Moncada army barracks, where he and his brother led a fruitless rebel assault exactly 55 years ago.
Both men were jailed for the attack, but did of course eventually go on to seize power from the then Cuban leader, Fulgencio Batista, on 1 January 1959.
The Rebellion Day celebrations two years ago were the last public event at which Fidel Castro was seen before he underwent emergency intestinal surgery. He has since appeared only in official videos and photographs.
(BBC)
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