The business confidence in South Africa slightly decreased in March, staying just above a four-year low that was reached in January, according to the South African Chamber of Commerce and Industry. The organization reported that the business confidence index (BCI) was 93.9 in March, down from 94.0 in February and 93.8 in January. Factors such as a weaker exchange rate and high inflation negatively impacted industry confidence, while strong share prices and lower real financing costs helped prevent a larger decline in the index. The SACCI stated that due to the current uncertain global economic climate and lower economic growth prospects locally and globally, the BCI has remained stagnant. Conditions were difficult and confidence was low, according to the chamber. Despite strong inflation remaining a concern, the central bank's efforts to tighten monetary policy seemed to be impacting consumer spending. The Reserve Bank faces a challenging interest rate decision next week, following a series of rate increases since June 2006. Although the rate hike cycle was paused due to economic growth concerns, inflation continues to rise, with CPIX reaching a five-year high of 9.4 percent in February. SACCI noted that monetary policy is facing challenges in balancing inflation risks and economic constraints. Although lower international oil and food prices may provide temporary relief, the combination of a weaker rand and South Africa's tendency to import could contribute to inflationary pressures in the long run. The statement also noted that business confidence is currently in a precarious state and economic policy decisions should be made carefully.