The interest rates for different fixed and current term savings held by seven largest commercial banks in China were reduced, according to the latest announcement published by the banks on Thursday.

Tian Yun, a veteran economist, told the Global Times on Thursday that trimming deposit interest rate may help boost consumer spending and investment in China, which will accelerate economic growth.

Rates for fixed-term deposits with durations of three months, six months, one year, two years and five years have all been lowered by 10 basis points starting September 15.

And, the rates for three-year fixed term deposit have been reduced by 15 basis points to 2.6 percent, the newly released deposit interest rates for the state-owned banks showed.

"The banks works as the market intermediary, and the change of deposit interest rate by the banks usually follows the market demand," said Tian, noting that the deposit interest rates could be raised as market demands for cash rise.

China's central bank on August 22 released the latest adjustment for the benchmark loan prime rate (LPR), lowering the one-year LPR by five basis points to 3.65 percent and the five-year LPR by 15 basis points to 4.3 percent.

"The lower demand for funds will lead to a decline in monetary supply, and the adjustment of the deposit interest rates will increase the efficiency of capital flow, amid current economic downward pressure," said Tian.