No, this is incorrect. You need to check the specs of the immersion rod. If you don't know, then yes you can use a 16A capable relay.
Are you familiar with techniques to safely switch mains with relays? If not, be careful; some tips are:
Keep the low power side well separated, use protection devices like fuses, make sure you can't touch any high voltage points, etc.
Don't use the small PCB relays unless you really use a PCB (some people have been known to use a stripboard, which is highly
dangerous). You could use the plug-in relays that fit into bases that have screw terminals.
A semiconductor method will require some engineering, you could investigate triacs as one option.
You could use a ready-built SSR, but a 16A one may be expensive and may require heatsinking.
Regarding temp sensors, SE95 has extremely good resolution as you require, but that doesn't mean accuracy is extremely good too.
I don't know of any accurate to 0.5degC.