People's Bank of China (PBOC), China's central bank, injected a net 70 billion yuan ($10.95 billion) into the market through open market operations this week, Economic Information Daily reported.

The paper said PBOC mopped up 7 billion yuan by selling three-month bills and drained 30 billion yuan from the money markets through 91-day bond repurchase agreements on Thursday.

Bills that matured this week reached 192 billion yuan, up 317.39 percent from last week. The central bank withdrew a total of 122 billion yuan from the market this week, and net injection of money hit 70 billion yuan, up 26 billion yuan from last week.

The paper quoted analysts as saying that the CPI and PPI in July triggered higher interest rates, but the US and Europe debt crises has forced PBOC to increase money injection into the market, suggesting that the central bank is loosening its grip while awaiting a clearer solution.

Monetary policies will be cautiously implemented, the possibility of hiking interest rates and the reserve-requirement ratio will be small, according to Bank of Communications' financial research center quoted by the paper.