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continue to raise rates if its economic outlook is realized while remaining cautious on how far they will eventually push rates up, the people said.Most Read from BloombergTrump Replaces Architect to Lead $300 Million Ballroom DesignWealthy County in New York Must Pay $112 Million Over Immigrant Rights ViolationsSteve Cohen, Bally’s, Genting Picked to Run Casinos in NYCWealthy New Jersey Town’s Vote on Fixing School Deficit CanceledOwner of NYC’s Fordham Landing Housing Project Files BankruptcyThe officials see a high likelihood of increasing the benchmark rate by a quarter percentage point to 0.75% at the end of a two-day gathering on Dec. 19, the people said. A rate hike would push the policy rate in Japan to its highest level since 1995. A key market focus is how aggressively the central bank will point to additional hikes.The yen strengthened against the dollar following the report, and was trading around 154.56 mid-afternoon in Tokyo from just above 155 before the news.Expectations among market players of a looming rate hike jumped this week after Governor Kazuo Ueda said his board would make an appropriate decision on raising interest rates in a speech Monday. That’s similar to the message he gave in January ahead of a move to raise borrowing costs.BOJ officials were aware of how the remarks would be interpreted by the market, according to the people, an indication that investors have drawn the right conclusion. An index of overnight swaps shows that traders see about a 90% chance of the move this month.Key members of Prime Minister Sanae Takaichi’s government wouldn’t stand in the way of the BOJ if it decides to raise interest rates in December, people familiar with the matter told Bloomberg earlier this week. Takaichi is known as a supporter of monetary easing and BOJ watchers have cited her stance as key in influencing the BOJ’s rate path.With more clarity on the impact of US tariffs and elevated corporate profits continuing to give firms leeway to raise wages, the officials assess that the likelihood has risen for their economic outlook to be realized, the people said. Still, the bank will continue to sift through incoming data and information until the last minute before reaching a final policy decision, the people said. The Federal Reserve meets next week and is expected to cut its benchmark rate. 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