The household spending fell at a slower pace than forecast in October, but while the broader consumption trends remained soft the Bank of Japan is still expected to raise rates again to normalize monetary conditions after a decade of easy policy.
Some analysts say a recovery in wages would eventually spur consumers to loosen their purse strings and encourage the BOJ to keep pushing borrowing costs higher.
"Even in this situation, the BOJ is saying that consumption is firm," said Yoshiki Shinke, senior economist at Dai-ichi Life Research Institute.
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