New Delhi, Jan. 28 -- Bank of America (BofA) Global Research has projected a shift in the Reserve Bank of India's (RBI) monetary policy stance, citing stabilising market sentiment and improving domestic macroeconomic conditions. According to BofA, the delayed imposition of US tariffs has allowed the RBI to focus on local growth and inflation data, paving the way for 25 basis points (bps) cut in the repo rate to 6.25 per cent in the February Monetary Policy Committee (MPC) meeting.

BofA emphasised that the stabilisation of market sentiment, coupled with easing inflationary pressures, supports the need to lower monetary policy rates. The firm highlighted that both growth and inflation indicators suggest the necessity of monetary easing.

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