South Africa's business confidence slightly decreased in March, remaining just above a four-year low reached in January, according to the South African Chamber of Commerce and Industry. The business confidence index (BCI) was at 93.9 in March, down from 94.0 in February and 93.8 in January, the lowest level since October 2003. SACCI attributed the decrease to a weaker exchange rate and high inflation, but noted that strong share prices and lower real financing costs helped prevent a larger decline in the index. The organization stated that due to the current uncertain global economic climate and lower economic growth prospects locally and globally, the BCI has remained stable. However, despite challenging conditions and fragile confidence, the chamber noted that strong inflation remained an issue. While easier money supply and credit growth figures suggested that the central bank's tightening of monetary policy may be controlling consumer spending, the Reserve Bank faces a difficult decision on interest rates next week. The repo rate has remained at 11 percent since January after several increases since June 2006. Although the rate hike cycle was paused due to concerns about economic growth, inflation continues to rise, with the CPIX reaching a five-year high of 9.4 percent year-on-year in February. SACCI stated that monetary policy is facing the tough task of balancing the risks of increasing inflation and price instability with constrained economic activity. Lower international oil and food prices may provide some temporary relief, but a weaker rand and South Africa's tendency to import could contribute to inflation expectations. The statement emphasized that business confidence is currently at a critical point, and economic policy decisions should be made cautiously.