In a speech to the National Federation of Hungarian Building Contractors, National Bank of Hungary Governor Mihály Varga linked the central bank’s stability-oriented approach to support for the construction sector, arguing that higher efficiency and lower costs can contribute to achieving and maintaining price stability. He framed a stronger construction industry as directly beneficial for the broader economy through its impact on competitiveness, efficiency and demand, and said cost-reducing efficiency gains could dampen inflation fluctuations in line with the central bank’s objectives. Varga also urged the sector to take advantage of the ongoing technological revolution to raise efficiency, output and profitability. He pointed to early findings from joint corporate economic surveys by the National Bank of Hungary and the Hungarian Chamber of Commerce and Industry indicating lower orders, and said a patient, stability-oriented monetary policy would help anchor inflation expectations amid global uncertainty, providing an important basis for construction companies.
National Bank of Hungary 2025-12-10
National Bank of Hungary Governor Varga backs patient stability-oriented monetary policy and calls for construction efficiency gains
National Bank of Hungary Governor Mihály Varga emphasized the central bank's stability-oriented approach in supporting the construction sector, highlighting efficiency and cost reduction as key to price stability. He advocated leveraging technological advancements to enhance industry efficiency and profitability. Varga noted early survey findings of declining orders and stressed the importance of a patient monetary policy to anchor inflation expectations amid global uncertainty.