Pranab Mukherjee
India's Finance Minister Pranab Mukherjee REUTERS

Indian Finance Minister Pranab Mukherjee Saturday expressed confidence that the Reserve Bank of India would adjust the monetary policy on its mid-quarter monetary policy review June 18.

Mukherjee, who is nominated by the ruling United Progressive Alliance to contest the presidential elections in July, said that the government is taking fiscal measures to ensure that the central finances remain strong in wake of difficult times, PTI reported.

The RBI is one of the most respected monetary authorities... I am confident they (RBI) will adjust the monetary policy as we are adjusting fiscal policy, the Finance Minister said at an Assocham conference in Mumbai.

Speaking on the obstacles faced by the Indian economy, he said that slow growth, fiscal and current account deficits and high inflation along with negative investor sentiments were hampering the economical growth.

On concerns over the fiscal deficit, he said, We are taking steps, not sitting idle...if federal finances become weak, nobody will be able to bail out Indian economy.

Reacting to the global rating agency Standard and Poor's warning on downgrading India's rating, he said, as finance minister I cannot ignore ground reality, apprehensions of Indian industry and credit rating agencies.