Johannesburg - Business Unity South Africa (Busa) said on Thursday it agreed with the decision by the Reserve Bank to leave interest rates unchanged, describing the decision as a "realistic reading of external and internal economic factors".
"The domestic economic recovery is still modest and the global economic outlook remains uncertain," it said.
"Busa is still concerned about the extent to which continued rises in administered prices pose a risk to the inflation outlook".
It said that unless there was more coordination to decisions on administered prices, the cost would negatively affect businesses.
"At a time where a number of key wage negotiations are under way, Busa also agrees that it is important that remuneration levels as a whole should remain reasonable and closely linked to productivity," it said.
Busa added that the forecast for lower growth at 3.6% and higher inflation at 6%, "again emphasises the careful balance which monetary policy needs to keep in its decisions on inteest rates."