
In today’s briefing:
- UK Inflation Flies Hawkish Pressures
- Biden Era Tire Emission Rule In Bin; USTMA Welcomes It
- Korea Value Up Index Rebalance Announcement Next Week
- CX Daily: Why CATL Is So Revved Up About Battery Swapping Stations
- Indonesia: 25bp Rate Cut To 5.5% (Consensus 5.5%) in May-25

UK Inflation Flies Hawkish Pressures
- Our above-consensus forecast was exceeded by UK inflation flying higher in April amid administered price rises and postponed price increases due to the late Easter in 2025.
- Airfares still soared 10pp more than the norm for a late Easter, and 20pp above the April average. This stoked service and core inflation, although the median was steadier.
- We expect inflation to grind up until October, whereas the consensus assumes stability until then. Persistently excessive inflation should discourage the BoE from cutting again.
Biden Era Tire Emission Rule In Bin; USTMA Welcomes It
- EPA regulation targeted previously unregulated emissions
- USTMA calls it regulatory overreach that shoots up costs
- Move can bolster domestic manufacturing, competitiveness
Korea Value Up Index Rebalance Announcement Next Week
- Korea Exchange plans to announce the first rebalance of the “Korea Value Up Index” next week on 27 May. The actual rebalance is expected to take place on 13 June.
- Korea Exchange plans to reduce the constituents to 100 (from 105 currently) and change 30% of the included stocks in this index to better reflect the Value Up program incentives.
- In this insight, we provide a list of 20 potential exclusion candidates and 20 inclusion candidates in the Value Up index rebalance.
CX Daily: Why CATL Is So Revved Up About Battery Swapping Stations
CATL /In Depth: Why CATL is so revved up about battery swapping stations
Drug prices /: How Trump’s proposed price cuts could hurt China’s innovative drugmakers
Law /: China to overhaul Prison Law in push for greater transparency
Indonesia: 25bp Rate Cut To 5.5% (Consensus 5.5%) in May-25
- Bank Indonesia cut the BI-Rate by 25 basis points to 5.50%, matching consensus forecasts and resuming monetary easing after a three-meeting pause, citing controlled inflation and rupiah stability.
- The decision was driven by subdued inflation, a stabilised currency, and weaker-than-expected GDP growth, with BI revising its 2025 growth forecast slightly downward and emphasising the need to support domestic demand.
- Future interest rate policy will remain data-dependent, with further easing possible if inflation and currency stability persist. Still, BI is expected to proceed cautiously given ongoing global uncertainties and the need to safeguard external resilience.