A rotary cutting tool includes a tool holder. The tool holder has holder body and an adjustment sleeve circumferentially disposed thereabout. The adjustment sleeve has an at least one sleeve adjustment groove which decreases in distance from a sleeve central axis in a rotational sleeve direction. The tool holder further has a plurality of insert cartridges, each having an insert pocket and at least one cartridge pin. At least one pin is located in a respective sleeve adjustment groove. The tool holder is adjustable between inner and outer adjusted positions by rotating the adjustment sleeve in the rotational sleeve direction. In the outer adjusted position, the insert cartridges are displaced in an outwards adjusted direction so that the insert pockets are radially outwards compared to the inner adjustment position.