TOKYO, Jan 16 Reuters The head of Japan39;s biggest business lobby Keidanren on Tuesday urged its members, including many top bluechip companies, to raise workers39; pay to offset the pain of rising living costs and put a decisive end to deflation.

At stake for this year39;s spring wage talks is the outlook for the Bank of Japan39;s BOJ monetary easing, specifically negative interest rates, which can be phased out once wage hikes and inflation become sustainable, analysts said.

Whether wage hikes and inflation take hold will depend on the pace and extent of pay rises through annual wage talks between major firms and trade unions, to be concluded in midMarch, they said.

Market watchers have been questioning whether the BOJ could ditch its negative rate policy as early as this month, once wage talks show signs of acceleration in wage growth, which are a prerequisite for achieving the central bank39;s 2 price target.

Keidanren produce an annual report of its management and labour policy that provides the basis for its stance on annul wage talks with Rengo, Japan39;s largest labour unionists39; group.

The latest report released on Tuesday quotes Chairman Masakazu Tokura as saying the business lobby and companies bear social responsibility to aim for wage hikes that beat price rises at this year39;s wage talks.

There39;s a very strong sense of urgency that Japan39;s future rests on whether we can step up a gear to achieve structural wage hikes this year and onwards, he…