European markets ended the day up, after a choppy session. The markets rose throughout the afternoon after the Bank of England announced it was cutting interest rates by 25 basis points to 0.25%.
It was the first rate move since March 2009. The central bank also announced a series of policies to prop up the economy after Brexit vote. The bank announced it expanded the asset purchase program for U.K. government bonds by £60 million ($78.8 million) to a total of £435 billion.
The bank's Monetary Policy Committee also announced it will start a £10 billion corporate bond buying program.
The central bank also announced the launch of the Term Funding Scheme (TFS), which will provide funding for banks at an interest rate close to the bank rate and allow them to pass on the rate cut to customers.
In London, the FTSE 100 gained 1.59% to end the day at 6,740.16.
The pound fell after the bank's announcement and was recently down 1.43% against the dollar at $1.3135.
U.K. lenders, which were warned by the governor of the Bank of England to pass on the rate cut to customers, had a changeable day.
HSBC (HSBC) which does most of its business outside the U.K., was up 2.8%.Barclays (BCS) ended the day 0.7% up. Barclays said it would decrease its variable and tracker mortgages by the 25 basis points.
Royal Bank of Scotland (RBS) closed 0.7% up. RBS's NatWest arm, which has 17% of its customers on standard variable mortgages, it was currently reviewing whether it would make changes to the rate of its variable rate products.
It said: "The Bank of England base rate is only one of a number of factors that we take into account when reviewing interest rates. The 0.25% reduction will form part of the ongoing rate reviews across our product ranges. All variable rate products that track the Bank of England base rate will be reduced by 0.25% from September."
In Frankfurt, the Dax was up 0.57% at 10,227.86 and the Cac 40 was up 4,345.63 also up 0.57%.
Siemens (SIEGY) (SMAWF) was the biggest gainer in Frankfurt, closing 4.5% up. The German engineering group on Thursday announced good third-quarter growth in its order book, an above-forecast 20% increase in profit in its industrial business to €2.19 billion ($2.44 billion) and a positive full year outlook.
Hikma Pharmaceuticals (HKMPY) plunged more than 16% today, after the company warned that delays in new releasing new products would erode profits. The company said there are issues facing its generic drug business.
Hikma said: "The revenue impact from the delay in certain new product approvals will be largely offset by higher contract manufacturing revenue. This change in the mix of revenue will have an adverse impact on profitability in 2016, which will also be impacted by higher than expected costs resulting from the acceleration in timing of certain pipeline-related litigation."
Rangold Resources (GOLD) pared earlier losses to close 3.8% down after it announcing that its second quarter was one of the toughest it has had. Production fell by 4% in the quarter after a mill in Cote d'Ivoire experienced difficulties. Net profit in the quarter fell 8% compared with last year to $58.7 million.