Clinging to the world’s only negative policy rate, the BOJ’s dovish stance may send the embattled yen sliding again.

The country’s finance minister indicated that direct intervention is among the options on the table and, if needed, it will come swiftly and without warning.

Despite the concern over the currency, Kuroda remains unmoved. 

The governor has said a rapid weakening of the yen is undesirable. But even after the yen hit 144.99 earlier this month, the BOJ continues to hold the view that a weak yen is positive for the economy overall if it’s stable, according to people familiar with the matter. 

Even if the BOJ tried to tweak policy in response to the yen, it would be largely futile, Kuroda has indicated.

Still, the BOJ’s stance comes with an increasing cost. While it keeps its short-term interest rate at -0.1%, a 0.25% cap it enforces on 10-year government debt is under renewed pressure.