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Further policy easing likely by Taiwan CBC in March next year

Taiwan's Governor Perng noted that the growth bottomed in second quarter and is likely to rise in 2016, he told that negative output gap is likely to widen further in next year.

Specifically, he indicated that there is scope for further monetary accomodation, as the country's interest rate is still high than the US. 

"We now expect the CBC to keep policy unchanged throughout 2016. That said, we see increasing risk of further policy easing in March, if activity indicators fail to improve and the labour market continues to deteriorate", says Barclays in a research note. 
Even when there wont be further monetary stimulus, the central bank is likely to stay accomodative and keep excess liquidity at a modestly higher range over coming months.

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