Brazil’s central bank cut its target overnight interest rate by a full point to 9.25 per cent on Wednesday night, the lowest level in its history and a bigger cut than most market economists had expected.

The cut follows better than expected figures for gross domestic product in the first quarter, which led many analysts to expect the bank to slow the pace of its interest rate cuts. The target rate, known as the Selic, has fallen from 13.75 per cent since October as the bank sought to stimulate activity following the onset of the global economic crisis.