TOKYO - Prime Minister Sanae Takaichi on Thursday urged Japanese firms to agree to pay raises above inflation in annual wage negotiations next year, as her government pursues "responsible yet aggressive" fiscal policies to spur growth.

"I once again ask business leaders to work toward achieving base pay increases that are not eroded by rising prices," Takaichi, a fiscal dove, told a meeting organized by Japan's most powerful business lobby, known as Keidanren.

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