PBOC's Balance Sheet Shrinks In July

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If the PBOC repeatedly cuts banks' reserve requirement ratio (RRR), a strong signal of monetary easing, market interest rates will drop and depreciation pressure on the yuan will increase, the (CICC) report said.

A bank staff member checks RMB banknotes at a bank in Lianyungang, East China's Jiangsu province, Jan 7, 2016. [Photo/Xinhua] BEIJING - The balance sheet of China's monetary authority shrank in July after three consecutive months of rises, confirming the central bank's intention to create a neutral monetary environment, according to a research note released Sunday.…