Regarding monetary policy, oya GDP growth, which attract most attention from policymakers and the public, is expected remain negative in 4Q15 and 1Q16. Indeed, even the government's forecast of 1.06%oya for full-year 2015 GDP growth would still be the weakest growth since the global financial crisis. 

In addition, the 3Q GDP report highlighted marked weakness in domestic demand, broadly based across most major economic sectors, including manufacturing, wholesale and retail, real estate, and construction activity. 

On the inflation front, while the persistent negative prints in headline CPI inflation rates (in %oya terms) since early this year seem to be behind the forecasts (with October CPI up 0.3%oya), general input cost pressure, as measured by WPI and import prices, has remained soft. Hence, CPI inflation will likely remain modest. Thus, it is believed that there is still room for the Taiwan central bank to cut policy rates again, possibly by another 12.5bp in December