[Bank of Japan May Raise Interest Rates in December, Reaching Highest Level Since 1995] Officials at the Bank of Japan plan to raise interest rates at the policy meeting later this month, provided there are no major shocks to the economy or financial markets. This rate hike would bring the policy rate to its highest level since 1995. According to informed sources, the Bank of Japan may signal further rate hikes in the future but will remain cautious about the upper limit of rates and assess the economy's response to each hike. Overnight swap indices indicate that traders estimate a roughly 90% chance of a rate hike this month. The Bank of Japan's estimated range for the neutral interest rate is between 1% and 2.5%.