You can fit a 160 on your stock rim but it isn't easy if you do them by hand like I do. There is no interference with the belt guard or anything else. The tire does not like that narrow a rim. A 150 fits easy and mounts much easier.
185 is the width in millimeters (divide by 25.4 to get inches - which, in this case, would be 185/25.4=7.28 inches) 60 is the aspect ratio. This is a percentage of the width and it tells you how tall the sidewall of the tire is. (185 x 60% = 111 millimeters [or 4.37 inches]) 16 is the rim diameter.