The Bank of Japan on Thursday kept its monetary policy unchanged, deciding to keep the banking system awash with funds, BOJ officials said.

The decision reflects the central bank's view that a projected export-assisted recovery will probably be weak.

The central bank will continue pumping money into private-sector banks' current accounts at the BOJ, keeping the balance between 10 trillion yen and 15 trillion yen, the Policy Board decided in a unanimous vote.

While the BOJ removed a conditional clause to provide money above the 15 trillion yen target to meet any end-of-the-year fund demand through March, it said its basic stance to keep flooding the banking system remains unchanged.

"Should there be a risk of financial market instability, such as a surge in liquidity demand, the bank will provide more liquidity regardless of the guideline," according to the monetary policy guideline.

In March, the BOJ's account balance rose to 27.7 trillion yen.

Since March 2001, the BOJ has flooded the banking system with more funds than it needs in the hope that some of the money will find its way to companies and individuals, stimulate demand and halt price falls.

But although short-term interest rates are at near-zero levels, bank lending and consumer demand remain weak and prices keep sliding. The consumer price index fell for the 30th straight month in February.