On 2nd of June, the People's Bank of China issued the Interim Measures for the Administration of Large Amount Certificate of Deposit, allowing the banks to issue certificate of deposit to individuals, non-financial corporation, and societies. Liberalization of deposit rate is the last step towards liberalization of interest rate, a step that is likely to be taken in near future, as such market-based reform of interest rate in China is likely to be completed by this year. It is safe to say that liberalization of deposit rate and hence realizing the full liberalization of interest rate is the common goal of all parties concerned. The current market provides a good foundation for the liberalization of deposit rate. It is highly probable that full liberalization of deposit rate will take place within this year, probable during the next round of interest cut.