This paper analyzes the interest rate changes and their impact on the quantity and structure of the consumption, generalized saving, real saving and financial saving based on the data of Chinese household from 1979 to 2000. We have found that the substitute effect of interest rate change plays an important role in the intertemporal consumption planning and the Chinese household is sensitive to the interest change. We also explain some puzzling phenomenon in Chinese macroeconomics and provide some implication.