Japan's unions demand biggest pay raises in 31 years

Higher wages could prompt the BOJ to starting hiking interest rates

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The 7 million-member Japanese Trade Union Confederation, known as Rengo, holds a rally for this year's spring wage negotiations in Tokyo on March 1. © Jiji

WATARU SUZUKI, Nikkei staff writer

TOKYO -- Japan's largest labor confederation said Thursday that wage rise demands by its member unions hit a 31-year-high, setting the stage for large pay increases that could prompt the central bank to start lifting interest rates.

Every spring, unions and management hold talks, known as shunto, to set monthly wages ahead of the start of Japan's fiscal year in April.

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