Earlier this week the Bank of Japan held rates steady at 0.50%.

Economists from Capital Economics wrote in a research note that despite threats of a recession, the Bank of Japan will hold rates steady until 2009. They said they are expecting the next move in rates will be up.

"We have pushed back our forecast for the timing of the next rate increase to February 2009, although this would still be a little earlier than generally anticipated," they wrote.

In data, markets will receive Japanese supermarket sales for July. The indicator last posted a 0.9% year-over-year decrease.

All times in EDT:

Thursday

19:50 JP BOJ Monetary Policy Meeting Minutes for July

Friday

1:00 JP Supermarket Sales (Y/Y) July Prior: -0.9%

By Neils Christensen, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Megan Ainscow, This email address is being protected from spam bots, you need Javascript enabled to view it

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