The economy Holt inherited was growing strongly, aided by the opening of new iron ore mines. However, in 1959, inflation was running at 4.5% and Treasury was alarmed. Holt was reluctant to act, but in November 1960 introduced a deflationary package of tax changes. He also reluctantly agreed to an interest rate rise by the Reserve Bank. The credit squeeze was nicknamed the "Holt jolt". The economy went into recession, and unemployment rose to three percent, which was considered high for the time and contrary to the government's policy of full employment.