Bank of Japan expected to lift rate to 1.25%, highest since 1995

Consensus expects the Bank of Japan to raise its policy rate 25 basis points — 0.25 percentage points — to 1.25% at its Sept. 17-18 meeting, Reuters reported Sept. 8. That would leave borrowing costs at levels unseen since 1995, Reuters reported Sept. 17. I’m skeptical of the smooth path priced beyond that.