In March, South Africa's business confidence slightly decreased, staying just above a four-year low seen in January, according to the South African Chamber of Commerce and Industry. The organization reported that the business confidence index (BCI) was at 93.9 in March, down from 94.0 in February, and dropped to 93.8 in January, the lowest level since October 2003. 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 locally and globally, the BCI remained unchanged. However, the conditions were challenging and confidence was low. The chamber noted that despite strong inflation still being an issue, the easing of money supply and credit growth indicated that the central bank's tightening of monetary policy may be successfully curbing consumer spending. The Reserve Bank faces a tough decision on interest rates next week, as it had kept the repo rate at 11 percent in January after a series of increases since June 2006. Although the rate hikes were paused due to concerns about economic growth, inflation has continued to rise, with the targeted CPIX reaching a five-year high of 9.4 percent year-on-year in February. SACCI stated that monetary policy is already dealing with the challenges of balancing the risks of rising inflation and price instability against limited economic activity. In the near future, decreased international oil and food prices may provide some respite, but a devalued rand and South Africa's tendency to import could contribute to inflation concerns. The statement also noted that business confidence is currently in a delicate state, and economic policy decisions should be made carefully.