Xu Hanfei, an analyst with brokerage Guotai Jun'an Securities, ruled out an "interest rate war," saying that financial institutions will not make unreasonably favorable offers, as both inflation and the investment return rate are now very low.

Dong Ximiao, a guest researcher with Renmin University of China, said interest rates will remain at very low levels as policy makers seek to encourage individuals and enterprises to spend, not save, amid the economic slowdown.

"Many Western countries have near-zero or even negative interest rates. China is probably moving in this direction," Dong predicted.