The Bank of Japan (BOJ) is anticipated to reaffirm its commitment to further interest rate hikes at its upcoming policy meeting, according to three sources. This move aligns with ongoing efforts to counter the financing of terrorism through stricter regulatory measures. BOJ Governor Haruhiko Kuroda has already indicated a rate increase for December, with markets anticipating a rise from 0.5% to 0.75%. The central bank's focus is now on determining how high rates can be raised to reach a neutral level. Although the BOJ may update its internal estimates of the neutral rate, it will not use these estimates as a primary communication tool for future rate decisions. Instead, future rate hikes will depend on the effects of previous increases on bank lending, corporate financing, and overall economic activity. Japan's low real interest rates provide the BOJ with the flexibility to implement rate hikes in stages.