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Johannesburg - Business Unity South Africa (Busa) said on Thursday it would have liked to have seen more boldness in the monetary policy committee's (MPC's) approach.
Commenting on the MPC's decision to keep the repo rate on hold at 5.5%, Busa said a small cut in interest rates would have sent out a positive message to underpin economic recovery in 2012.
However, the business group said it broadly shared the economic analysis offered by the Reserve Bank of the current domestic and global economic outlook.
"The trends outlined resonate with business perceptions. The external economic environment has clearly deteriorated since the last meeting of the monetary policy committee and Busa agrees that forecasts of SA economic growth in 2012 will now need to be revised downward.
"Business confidence and employment prospects remain at low levels."
It said a small cut in interest rates would have sent out a positive message to underpin economic recovery "without upsetting the balance of risks on the inflation outlook".
Commenting on the MPC's decision to keep the repo rate on hold at 5.5%, Busa said a small cut in interest rates would have sent out a positive message to underpin economic recovery in 2012.
However, the business group said it broadly shared the economic analysis offered by the Reserve Bank of the current domestic and global economic outlook.
"The trends outlined resonate with business perceptions. The external economic environment has clearly deteriorated since the last meeting of the monetary policy committee and Busa agrees that forecasts of SA economic growth in 2012 will now need to be revised downward.
"Business confidence and employment prospects remain at low levels."
It said a small cut in interest rates would have sent out a positive message to underpin economic recovery "without upsetting the balance of risks on the inflation outlook".
