The Brazilian central bank has cut its main interest rate by 50 basis points to 5 percent, the lowest it has ever been, but has signalled that monetary policy easing may become less drastic, Reuters reports.

The news agency said on Wednesday the decision by the rate-setting committee, made up of eight people, to cut the rate was unanimous.

The report quotes a written statement issued by the committee as saying the benign outlook for inflation “should allow for an additional adjustment of equal magnitude”, but that low interest rates “may raise the inflation trajectory over the relevant monetary policy horizon”.

The Brazilian central bank forecasts that the annual rate of consumer price inflation will be 3.7 percent next year, below its target of 4 percent, and 3.6 percent the year after, below its target of 3.75 percent, Reuters says.

In a separate report, the Chinese government-run news agency, Xinhua, says the main interest rate in Brazil has fallen from a peak of over 14 percent in 2015.