The Reserve Bank of India is set to allow trading in bond forwards that long-term investors can use to manage their interest rate risk, the central bank said on Friday.

The Reserve Bank of India has cut its key interest rate for the first time in nearly five years, as cooling inflation has offered room to stimulate the slowing economy. The central bank forecast real GDP growth for next fiscal year at 6.

(Reuters) -The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.