Based on the data from Hubei province from 1990 to 2008, this paper analyzes the relationship between rural financial development and agricultural growth in Hubei province.The result shows that there is a positive correlation between the rural financial development and agricultural growth in Hubei province, and the rural financial development is the Granger cause of agricultural growth.The data from Hubei and the whole country between1990 and 2008 further shows that the financial interrelation ratio in rural Hubei is far below the national level, which implies that the financial repression phenomena exist and thus financial development fails to make due contributions to the rural economic growth in Hubei province.Therefore, this paper puts forward some policy suggestions on how to build diversified rural financial service system and strengthen competitive mechanism in rural financial market from the perspective of deepening rural finance.