India’s foreign minister says India’s economic growth will be slower than expected due to the global financial crisis and a series of interest rate hikes.

Pranab Mukherjee said Wednesday India’s growth rate will not reach the 9 percent predicted for the current fiscal year.

The finance minister said “we must not lose perspective of the global situation” and that there is a slowdown all over the world.

India’s central bank has increased interest rates 12 times in less than two years in order to curb the country’s rising inflation. Analysts say the rate hikes have contributed to slower growth in Asia’s third-largest economy.

Other economies have instead encouraged growth by reducing interest rates. Mukherjee told reporters in New Delhi that each country has to pursue its own policies.

The Indian finance minister also said that high crude oil prices will make it difficult for India to meet its target of cutting the fiscal deficit this year to 4.6 percent of gross domestic product.