Bank of Japan's (BOJ) Deputy Governor Kikuo Iwata poses for a photo after an interview with Reuters at the BOJ headquarters in Tokyo June 24, 2013. REUTERS/Toru Hanai

Bank of Japan Deputy Governor Kikuo Iwata said on Thursday the central bank does not need to control government bond yields beyond 10-year yields, as they have less influence on economic activity than shorter-term yields.

He also said the BOJ’s emphasis on the effect of its huge asset purchases has not changed under its new framework put in place last month, which targets interest rates rather than the pace of money printing.

“There is no limit to how much (the BOJ can) expand base money. But the amount of government bonds the BOJ needs to buy to hit its 2 percent inflation target depends on economic developments at the time,” he told parliament.

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