In March, South Africa's business confidence slightly decreased, remaining just above a four-year low reached in January, according to the South African Chamber of Commerce and Industry. The organization reported that its business confidence index (BCI) was at 93.9 in March, down from 94.0 in February. This was a slight drop from the lowest level recorded in October 2003, which was 93.8 in January. SACCI attributed the decline in confidence to factors such as a weaker exchange rate and high inflation, but noted that strong share prices and lower real financing costs helped prevent a larger decrease in the index. The organization stated that due to the uncertain global economic climate and lower economic growth prospects both locally and globally, the BCI remained unchanged. However, the conditions were difficult and confidence was low. The chamber noted that despite strong inflation being a concern, the central bank's tightening of monetary policy seemed to be impacting consumer spending. The Reserve Bank faces a challenging decision on interest rates next week, having kept the repo rate at 11 percent in January after multiple increases since June 2006. While the rate hikes were paused due to worries about economic growth, inflation has continued to rise, with CPIX reaching a five-year high of 9.4 percent in February. SACCI stated that balancing the risks of inflation and economic activity poses a tough challenge for monetary policy. Lower global oil and food prices may provide temporary relief, but a depreciating rand and South Africa's tendency to import could contribute to inflation. There is uncertainty about business confidence, so economic policy decisions should be made cautiously.