A 1/16" drill is a tad smaller than 1.6mm. Using a knurling tool on pins, shafts, axles etc is great for making them grow a bit - almost the proverbial 'putting on' tool. A straight knurl is good in some dry applications whereas a diamond knurl may help hold the glue as a shaft is pushed into a hole.

The usual way to get a hole bang on size is to drill undersize and then ream it.

Reg