CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
SBP uses Open Market Operations primarily to:
A. Set income-tax rates
B. Manage market liquidity and guide the overnight rate
C. Issue passports
D. Fix retail prices
Correct Answer: B
OMOs inject or absorb liquidity so overnight money-market rates remain close to the policy rate.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The April 2026 increase from 10.5% to 11.5% was equal to:
A. 100 basis points
B. 25 basis points
C. 50 basis points
D. 200 basis points
Correct Answer: A
The policy rate rose by one full percentage point, or 100 basis points.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
One percentage point equals:
A. 10 basis points
B. 50 basis points
C. 1,000 basis points
D. 100 basis points
Correct Answer: D
A 100-basis-point change equals 1 percentage point.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The current width of the SBP interest-rate corridor is:
A. 50 basis points
B. 100 basis points
C. 200 basis points
D. 400 basis points
Correct Answer: C
The floor is 100 bps below and the ceiling 100 bps above the policy rate, giving a 200-bps corridor.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
As of 2 October 2026, the SBP corridor floor rate was:
A. 9.50 percent
B. 10.50 percent
C. 11.50 percent
D. 12.50 percent
Correct Answer: B
The standing-facility floor is 10.5 percent under the current corridor.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
As of 2 October 2026, the SBP corridor ceiling rate was:
A. 12.50 percent
B. 10.50 percent
C. 11.00 percent
D. 13.50 percent
Correct Answer: A
With an 11.5 percent policy rate, the standing-facility ceiling is 12.5 percent.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
As of 2 October 2026, the SBP policy rate was:
A. 10.50 percent
B. 12.50 percent
C. 9.50 percent
D. 11.50 percent
Correct Answer: D
The latest completed MPC decision, on 14 September 2026, kept the policy rate at 11.5 percent.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The lower bound of the SBP interest-rate corridor is the:
A. Overnight Reverse Repo Ceiling rate
B. Consumer lending rate
C. Overnight Repo (Floor) rate
D. Export finance rate
Correct Answer: C
The repo standing facility forms the lower bound/floor of the corridor.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The upper bound of the SBP interest-rate corridor is the:
A. Overnight Repo (Floor) rate
B. Overnight Reverse Repo (Ceiling) rate
C. KIBOR bid rate
D. Prize bond rate
Correct Answer: B
In SBP's current terminology, the reverse repo standing facility is the ceiling.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Which SBP instrument anchors the interest-rate corridor?
A. Policy rate
B. Tax rate
C. Exchange-company fee
D. Treasury customs duty
Correct Answer: A
The policy target rate sits within the SBP interest-rate corridor.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The MPC may formulate decisions regarding intermediate monetary objectives:
A. Never
B. Only with UN approval
C. Only during an IMF programme
D. As appropriate
Correct Answer: D
Section 9E allows the MPC to formulate policy including intermediate monetary objectives as appropriate.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Which of the following is NOT a statutory function of the MPC?
A. Setting key interest rates
B. Approving monetary-policy statements
C. Approving the federal tax code
D. Deciding reserve-supply policy
Correct Answer: C
Tax legislation is outside the MPC's statutory monetary-policy functions.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
As of 2026, the Governor and MPC Chairperson was:
A. Reza Baqir
B. Jameel Ahmad
C. Shamshad Akhtar
D. Yaseen Anwar
Correct Answer: B
Jameel Ahmad is listed by SBP as Governor and Chairperson of the MPC.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
If the SBP Governor is absent, the MPC may be chaired by:
A. A Deputy Governor nominated by the Governor
B. The Finance Minister automatically
C. The senior-most commercial banker
D. The Auditor General
Correct Answer: A
The SBP Act provides for a Deputy Governor nominated by the Governor to chair in the Governor's absence.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The MPC is fully empowered to decide:
A. The federal development budget
B. Income-tax legislation
C. Provincial borrowing limits by constitutional amendment
D. The monetary-policy stance
Correct Answer: D
SBP states that the MPC is responsible and fully empowered to decide the monetary-policy stance.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The MPC is best described as a:
A. Private advisory club
B. Temporary donor committee
C. Statutory body
D. Parliamentary standing committee
Correct Answer: C
The MPC is a statutory body formed under the SBP Act.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Who approves and issues Pakistan's Monetary Policy Statement?
A. Federal Cabinet only
B. Monetary Policy Committee
C. National Economic Council
D. Pakistan Bureau of Statistics
Correct Answer: B
Approving and issuing the Monetary Policy Statement is one of the MPC's statutory functions.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The MPC has authority to make decisions relating to:
A. Key interest rates and supply of reserves
B. Federal income-tax slabs
C. Provincial development budgets
D. Stock-market listing rules only
Correct Answer: A
The MPC's statutory responsibilities include intermediate objectives, key interest rates and reserve supply.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Which SBP Act section principally lays out the powers and functions of the MPC?
A. Section 2
B. Section 4B only
C. Section 35
D. Section 9E
Correct Answer: D
Section 9E specifies the MPC's policy powers and functions.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The MPC is established under which sections of the SBP Act?
A. Sections 1 and 2
B. Sections 20 and 21
C. Sections 9D and 9E
D. Sections 51 and 52
Correct Answer: C
SBP identifies Sections 9D and 9E as the statutory basis for the MPC.