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.