I am looking at Norway's economy, and I'm trying to make sense of some of the data I see. Norway's economy has a very close relationship to crude oil, and in 2014 crude oil had a massive drop. Looking at the inflation, exchange rate (USD/NOK, EUR/NOK) and interest rates, my questions are the following:
Is it a correct assumption that the the central bank started decreasing the interest rate, so that the damage to the economy (coming from the low crude oil price) is minimized?
Is it correct that a lower interest rate led to a weaker currency and thus higher inflation (2015, but mostly in 2016)?
What could be the reason that inflation has dropped significantly recently? (I am asking this since the interest rate has remained the same, though the currency has strengthened a bit).