The Central Bank of Brazil cut its interest rate to a record low of 7.5% this week in an attempt to reignite a stalled economic recovery. The previous level was 8%.
The move is the ninth consecutive cut since August last year, as the growth rate has fallen dramatically from the 7.5% recorded in 2012.
Now the economy is forecast to grow by less than 2% this year.
The BBC reports the bank's monetary policy committee on Wednesday left the door open for future interest rate reductions.
Previous measures by the government, such as the devaluation of the real and progressive reductions in interest rates, have so far failed to stimulate growth.