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.

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 cut its policy rate for the first time in nearly five years as economic growth slows and inflation cools.