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.
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.