Taiwan's 2015 growth likely to be at 0.9% y/y

Taiwan's improved inflation outlook and growth, which was bottoming in Q3 should make CBC more comfortable to stand pat in its December meeting.

The outlook for exports stays challenging and the trade contraction might continue for longer than initially planned, the outlook for electronics should improve slowly.

The inventories are down to normal levels, backed by unchanged US demand. The key catalysts are imported capital goods acceleration in Taiwan, and the news on increased planned capital expenditure by leading semiconductor producers which hints that the producer sentiment is also starting to bottom out.

"As such, we maintain our forecast for 2015 growth to come in at 0.9% y/y and accelerate to 2.5% y/y in 2016 on a low base and improved DM demand", says Barclays in a research note.