South Africa's business confidence slightly declined in March, just above the 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. In January, it had dropped to 93.8, the lowest since October 2003. SACCI cited a weaker exchange rate and high inflation as factors affecting industry confidence, but noted that strong share prices and lower real financing costs helped limit the decline in the index. The organization stated that due to the uncertain global economic climate and lower economic growth prospects locally and globally, the BCI remained unchanged. Conditions were challenging and confidence was low, according to the chamber. Despite strong inflation being a concern, there were signs that the central bank's tightening of monetary policy was starting to have an impact on consumer spending. The Reserve Bank will have a difficult decision to make regarding interest rates next week, after keeping the repo rate at 11 percent in January. While the rate hikes were paused due to concerns about economic growth, inflation has continued to rise, with CPIX reaching a five-year high of 9.4 percent in February. SACCI stated that monetary policy is facing challenges in balancing inflation and economic activity. Lower global oil and food prices may provide temporary relief, but a devalued rand and South Africa's reliance on imports could contribute to rising inflation. The current state of business confidence is fragile, making it crucial to approach economic policy decisions carefully.