TOKYO -- The Bank of Japan (BoJ) said Friday its policy board had decided unanimously to leave monetary policy unchanged at the end of a regular two-day meeting.

"The Bank of Japan will conduct money market operations, aiming at an outstanding balance of current accounts held at the bank at around 27 to 30 trillion yen ($226.5 to $252 billion)," the central bank said in a statement.

"Should there be a risk of financial market instability, such as a surge in liquidity demand, the bank will provide more liquidity irrespective of the above target," it added.

The widely expected decision to maintain the status quo came after the end of the morning session on the Tokyo stock market and had no impact on foreign exchange trading, AFP quoted dealers as saying.

"There was no reaction in the market. The dollar continued to move in a narrow range of 119.13-18 yen," said Yoshiki Yamamoto, dealer at Mizuho Bank.

The dollar was quoted at 119.12 yen around 11:20 am (0220 GMT), shortly before the BoJ announcement, against 119.03 yen in New York late Thursday.

The BoJ last eased monetary policy at its May 20 meeting by raising its current account balance target, citing flat economic activity coupled with growing uncertainty arising from the outbreak of Severe Acute Respiratory Syndrome (SARS), and stock and foreign exchange market instability. Before that move the Tokyo Stock Exchange's benchmark Nikkei 225 index had closed at 8,039.13 on May 19, after plumbing a 20-year low in April.

The market has rebounded by over 15 percent since the May decision and ended Friday's morning session ahead of the central bank announcement at 9,295.49.

At its June 11 meeting, the central bank approved a plan to buy asset-backed securities in a bid to stimulate the economy by making it easier for small- and mid-sized companies to raise funds.