Budapest, 10 December 2025 – “The stability-oriented approach of the MNB’s new leadership indirectly supports the development of the construction industry,” according to MNB Governor Mihály Varga, speaking at the year-end general meeting of the National Federation of Hungarian Building Contractors. He explained that boosting efficiency was crucial for construction industry competitiveness, which could also contribute to achieving and maintaining price stability by reducing costs.
Governor Varga noted that strengthening the construction industry had direct benefits for the Hungarian economy, as it affected competitiveness and efficiency, as well as demand. Boosting the sector’s efficiency via cost reduction would have a positive effect on fluctuations in inflation, in harmony with the MNB’s objectives. Varga called attention to the fact that the technological revolution currently underway in the global economy entailed new opportunities as well as challenges, and thus it was particularly important for the Hungarian construction industry to take part in this process. As he had previously said, as long as construction companies were able to use ever-newer technologies to their advantage, the sector’s efficiency, output and profitability would improve considerably. He recalled that the first results of the corporate economic surveys prepared jointly by the MNB and the Hungarian Chamber of Commerce and Industry (MKIK) reflected a lower level of orders, and market participants were already feeling the effects of unwinding uncertainties in the global economy. Governor Varga explained that, from the MNB’s perspective, a patient, stability-oriented monetary policy would support the anchoring of inflation expectations even amidst these uncertainties, which represented an important basis for construction companies.
Magyar Nemzeti Bank