The yen fell to a low point of about 40 years, and the Bank of Japan released a further interest rate hike

On 27 July, according to Reuters, the yen had recently fallen to about its lowest level in 40 years. Prime Minister Takahumi stated that, by increasing the potential for economic growth and boosting the economy, it would help restore market confidence in the yen. The Central Bank of Japan expects to maintain interest rates at 1 per cent at the policy meeting ending on 31 July, but may send a signal of further interest rate hikes in response to the weak yen and inflationary pressures. According to the Reuters survey, most economists expect the Central Bank of Japan to increase interest rates by 1.25 per cent by the end of the year。