Real wages fall 0.7 but the pace of decline slows
Analysts anticipate real wages to turn positive this fiscal year
Wages trend key to normalisation of BOJ monetary policy

TOKYO, June 5 Reuters Japan39;s inflationadjusted real wages fell in April from a year earlier but slowed the pace of decline as the Bank of Japan looks for early signs of achieving a positive cycle of rising wages and inflation that would allow it to lift interest rates.

Labour ministry data out on Wednesday showed real wages fell 0.7 yearonyear in April, extending a record streak of 25 consecutive monthly declines as higher living costs outweighed pay raises. But it was a slower pace of decline than the preceding month39;s 2.1 drop.

The previous record was a 23month run of declines in real wages from 2007 to 2009 during the global financial crisis, which had led to millions of job losses.

This time, stubborn inflation was to blame for sliding real wages, with consumer inflation of 2.9 outpacing nominal wages.

The central bank closely scrutinises strength of wage growth, which is a prerequisite for policy normalisation, having raised rates in March for the first time since 2007 in a landmark shift away from years of easing policy. It is expected to stand pat on policy in its June 1314 rate review.

On the brighter side, the labour ministry data showed scheduled cash earnings, or regular pay, rose 2.3 yearonyear in April, matching the previous high seen in October 1994, shortly after the…