The Bank of Japan is expected to keep interest rates steady this week but all eyes are on whether there will be any indication on when the next rate hike might be, which affects the fate of the yen that is hovering around a 40-year low against the dollar.

Since the BOJ just raised its policy rate from 0.75% to 1% in June, analysts and market participants anticipate that the central bank will retain the borrowing costs at its two-day policy meeting from Thursday.

Data from Totan ICAP showed the market was pricing in just a 1% chance of a rate increase as of Tuesday morning. A Bloomberg survey of 52 economists conducted between July 16 and 22 found that all of them expect the BOJ to hold rates.