A cutting tool includes an insert holder and a cutting insert releasably retained between upper and lower jaws of the insert holder. The lower jaw is provided with forward and rear projections. The forward projection has forward projection front and back abutment surfaces inclined, respectively, at first and second angles to a feed direction, the first angle being greater than the second angle. The cutting insert has a cutting portion adjacent a longitudinally extending shaft portion and a recess in a lower insert surface. The recess has front and back recess abutment surfaces inclined, respectively, at the first and second angles to a lower edge of the shaft portion. The forward projection front abutment surface abuts the front recess abutment surface, and the forward projection back abutment surface abuts the back recess abutment surface.