BoJ seems to be revelling in obstinate isolation

BOJ Kuroda

FOR a guy who professes to be uncomfortable with extreme moves in currency markets, Haruhiko Kuroda (pic) certainly doesn’t seem to mind causing them. By doubling down on easy money, the Bank of Japan (BoJ) governor is set on a path that will only further isolate the country from its peers and almost guarantee further erosion in the value of the yen.

After a week of high drama in the normally staid world of monetary policy, the BoJ stands out for keeping its main settings unchanged: In its meeting Friday, the bank left its benchmark interest rate in negative territory, while yields on 10-year bonds will remain capped at around zero. The only noticeable shift in its statement was to note that market developments warrant “due attention.” Traders took the lack of something more robust as a cue to aggressively sell the yen, adding to a slide of 14% against the dollar this year, the most of any major currency.