Zero Hedge

While we are led to understand that the US economy contracting at a pace not seen in three years was blamed on the snow (which somehow subtracted $100 billion in US economic growth for Q1 from early estimates of over 2.5% Q1 GDP estimates), we are not sure if one can also accuse snow for what the Mexican central bank just announced, when in a seemingly shocking announcement, it reported that it cut rates from 3.50% to 3.00%, a move expected by precisely zero economists out of the 20 polled by Bloomberg.

  • BANXICO SAYS DOMESTIC SPENDING, PRIVATE INVESTMENT WEAK
  • BANXICO DOESN’T SEE PRESSURE ON INFLATION FROM AGGREGATE DEMAND
  • BANXICO SAYS POOR PERFORMANCE SUGGESTS MODERATE 2Q RECOVERY

And the punchline:

  • BANXICO SAYS MEXICO’S 1Q ECONOMIC DYNAMISM WORSE THAN EXPECTED

Yup, sure sounds like a whole lot of snow.

In the meantime, all those carry traders long the MXN just got carted out feef first.

Full Banxico statement link here.

Zero Hedge

163MJsscfqNbTPtycuScqvhBUmhLNVQkGd

If you enjoy reading the information we bring you, please consider donating to WTF News via Bitcoin. Any donations are appreciated and go directly to expanding our capabilities.