Consider the following statements : 1. Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes. 2. 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?

1. Statement-I notes that in the post-pandemic era, many Central Banks globally increased interest rates (interest rate hikes). This is factually correct as numerous countries faced inflationary pressures and their central banks responded by tightening monetary policy. 2. Statement-II states that Central Banks generally assume they have the ability to counteract rising consumer prices (inflation) through monetary policy means. This is a fundamental premise of modern central banking. Raising interest rates is a standard tool assumed to dampen demand and control inflation. Thus, Statement-II is also correct. 3. The action described in Statement-I (raising rates) is a direct application of the belief described in Statement-II (using monetary policy to fight inflation). Therefore, Statement-II provides the rationale and is the correct explanation for Statement-I. 4. Both statements are correct, and Statement-II correctly explains Statement-I.