Mario Draghi
Draghi had earlier flagged the QE boost was a possibilityGetty

The European Central Bank has boosted markets after it announced a cut in central interest rates to 0% and a boost to the Quantitative Easing Programme.

The ECB said that the central bank is cutting interest rates from 0.05% to 0%.

The monetary policy makers also said that it is expanding the European asset purchasing programme by €20bn to €80bn a month. The expansion of the QE programme will start in April and the ECB also said it is widening the scope of products bought through the asset purchasing programme.

The move sent markets soaring, with European Markets surging. German DAX jumped 2%. ECB president Mario Draghi had earlier flagged that a QE boost and further monetary easing was a possibility.

"Mario Draghi has fired the big bazooka and given the market what it wanted and more," David Morrison, senior market strategist at Spread Co said. "It now remains to be seen if this has a lasting impact on risk assets and if the euro will continue to slide."

The central deposit rates for banks was also cut. The ECB imposed a cut of 10 percentage points, from -0.3% to negative 4% central deposit rate.

Despite the jump in equities, the Euro plummeted, dropping more than 1% against the US Dollar. Draghi will appear in front of the press later on Thursday (10 March).