A large number of papers have examined the effects of interest rate liberalization on economic and financial development, but there have been few systematic studies about the impacts of the latter on interest rate liberalization. Some researchers have said that macroeconomic and financial stability was the prerequisite for the success of interest rate liberalization reform. Many studies have claimed that financial innovation and disintermediation can promote interest rate liberalization and that economic and financial development also has an effect on the reform. After observing the process and results of interest rate liberalization in many countries, it can be concluded that interest rate liberalization is in fact greatly affected by the stages of economic development and the structural changes. Based on the global experiences, this chapter analyzes the advantages and limitations of the different stages of economic and financial development on interest rate liberalization in order to comprehensively understand the reform process in China.