Consider the following statements: Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes. Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means. Which one of the following is correct in respect of the above statements?

Statement-I: Correct. In the post-pandemic period, many central banks such as the US Fed, ECB, Bank of England and RBI raised policy rates to tackle high inflation.
Statement-II: Correct. Central banks generally believe monetary policy tools like interest-rate hikes can reduce demand and help contain consumer price inflation.
Link: Statement-II correctly explains Statement-I, because the rate hikes were undertaken precisely on the assumption that monetary tightening can counter rising prices.