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TOKYO - Japanese service sector activity grew at the fastest pace in eight months in April thanks to solid business and consumer spending, a private survey showed on Tuesday, results that should keep the central bank on track to hike rates again this year.
The firms cited rising expenses from higher wages as the main reason for passing on costs to customers, a fact that won't be lost on the Bank of Japan which has for years urged firms to raise pay at a steady pace to spur consumption. For policymakers, the strength in business and consumer spending in the latest survey should be welcome news.
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