CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
On 27 April 2026, the MPC decided to:
A. Cut it by 100 bps to 9.5 percent
B. Raise the policy rate by 100 bps to 11.5 percent
C. Keep it at 10.5 percent
D. Raise it to 13.5 percent
Correct Answer: B
The April meeting increased the rate by 100 basis points to 11.5 percent.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
On 9 March 2026, the MPC decided to:
A. Keep the policy rate unchanged at 10.5 percent
B. Cut it to 9.0 percent
C. Raise it to 11.5 percent
D. Raise it to 12.0 percent
Correct Answer: A
The March 2026 MPC maintained the 10.5 percent policy rate.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
On 26 January 2026, the MPC decided to:
A. Cut it to 9.5 percent
B. Raise it to 11.5 percent
C. Raise it to 12.5 percent
D. Keep the policy rate unchanged at 10.5 percent
Correct Answer: D
The January 2026 MPC held the policy rate at 10.5 percent.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The December 2025 policy-rate cut that set the starting rate for 2026 was:
A. 25 basis points
B. 100 basis points
C. 50 basis points
D. 150 basis points
Correct Answer: C
SBP cut the rate from 11.0 percent to 10.5 percent effective December 16, 2025.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
At the start of 2026, the SBP policy rate was:
A. 9.50 percent
B. 10.50 percent
C. 11.50 percent
D. 12.00 percent
Correct Answer: B
A 50-bps cut in December 2025 brought the policy rate to 10.5 percent, which remained in place in January and March 2026.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The policy-rate corridor helps strengthen monetary-policy signals by stabilizing:
A. Short-term interbank interest rates
B. Long-run population growth
C. Provincial election results
D. International oil production
Correct Answer: A
The corridor framework reduces excessive volatility around the overnight money-market rate.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Monetary-policy transmission works through households, firms and banks adjusting to:
A. Election cycles only
B. Weather forecasts only
C. Population census schedules
D. Changes in interest rates and financial conditions
Correct Answer: D
Interest-rate changes influence financing conditions, expectations, demand and eventually inflation.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
A fall in the policy rate, other things equal, tends to encourage:
A. Higher borrowing costs
B. Lower liquidity
C. Credit demand and economic activity
D. Automatic fiscal surpluses
Correct Answer: C
Lower rates can stimulate borrowing, spending and investment.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
A rise in the policy rate tends initially to make borrowing:
A. Cheaper
B. More expensive
C. Legally impossible
D. Unaffected in every market
Correct Answer: B
Higher policy rates transmit into market interest rates and raise financing costs.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Which tool can SBP use in addition to OMOs and reserve requirements?
A. FX swaps
B. Income-tax rebates
C. Census revisions
D. Agricultural support prices only
Correct Answer: A
SBP lists FX swaps among its money-market tools.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
SBP's liquidity operations seek to keep the overnight repo rate:
A. Equal to inflation at all times
B. Equal to GDP growth
C. Above the corridor ceiling
D. Close to the policy target rate
Correct Answer: D
Maintaining the overnight rate near the target strengthens policy transmission.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
A lower CRR generally:
A. Automatically raises taxes
B. Reduces bank liquidity
C. Releases more lendable liquidity to banks
D. Ends interbank trading
Correct Answer: C
Lower reserve requirements leave a larger share of deposits available for lending.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The stated purpose of reducing CRR in January 2026 was mainly to:
A. Raise customs revenue
B. Increase banks' capacity to lend to the private sector
C. Reduce exports
D. Fix the exchange rate
Correct Answer: B
SBP cited the improved macroeconomic environment and the aim of enhancing private-sector lending capacity.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The revised CRR requirements became effective on:
A. 30 January 2026
B. 26 January 2026
C. 1 February 2026
D. 28 April 2026
Correct Answer: A
SBP announced the change on January 26 and made it effective from January 30, 2026.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The daily minimum CRR after the January 2026 change was set at:
A. 1 percent
B. 5 percent
C. 6 percent
D. 3 percent
Correct Answer: D
The average requirement is 5 percent subject to a daily minimum of 3 percent.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Before the January 2026 CRR reduction, the average CRR was:
A. 4 percent
B. 5 percent
C. 6 percent
D. 8 percent
Correct Answer: C
The January 2026 policy statement and circular identify a reduction from 6 percent to 5 percent.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
In January 2026, SBP reduced the average CRR to:
A. 3 percent
B. 5 percent
C. 6 percent
D. 10 percent
Correct Answer: B
SBP reduced the average CRR to 5 percent to enhance banks' lending capacity.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
CRR stands for:
A. Cash Reserve Requirement
B. Credit Risk Ratio
C. Currency Revaluation Rate
D. Capital Recovery Requirement
Correct Answer: A
CRR is the Cash Reserve Requirement banks maintain under SBP rules.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Which is another monetary-policy tool used by the SBP besides OMOs?
A. Provincial sales tax
B. Import licensing
C. National census
D. Reserve requirements
Correct Answer: D
Reserve requirements are among the tools used by SBP to influence liquidity and money supply.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
OMO stands for:
A. Official Monetary Order
B. Overnight Market Objective
C. Open Market Operation
D. Open Money Ordinance
Correct Answer: C
Open Market Operations are a core liquidity-management tool.