Stock indices closed higher on the Bank of Japan's (BoJ) interest rate decision. The central bank on Friday lowered its interest rate for the first time ever to -0.1% from 0.1%, adding that it could cut its interest rate further if needed. Analysts did not expect this decision.

Meanwhile, the economic data from the Eurozone was mixed. Eurostat released its consumer price inflation data for the Eurozone on Friday. The preliminary consumer price inflation in the Eurozone rose to 0.4% year-on-year in January from 0.2% in December, in line with expectations.

The preliminary consumer price inflation excluding food, energy, alcohol, and tobacco climbed to an annual rate of 1.0% in January from 0.9% in December. Analysts had expected the index to remain unchanged at 0.9%.

Food, alcohol and tobacco prices were up 1.1% in January, non-energy industrial goods prices gained 0.7%, and services prices climbed 1.2%, while energy prices dropped 5.3%.

The European Central Bank (ECB) released its M3 money supply figures on Friday. M3 money supply rose 4.7% in December from last year, missing expectations for a 5.2% gain, after a 5.1 % increase in November.

Loans to the private sector in the Eurozone climbed 1.4% in December from the last year, missing expectations for a 1.5% rise, after a 1.4% gain in December.

Credit to the private sector dropped to 0.8% year-on-year in December from 1.2% in November.

European Central Bank (ECB) Governing Council member Jens Weidmann said in an interview with the German newspaper Frankfurter Allgemeine Zeitung published on Friday that the central bank should not add further stimulus measures as inflation excluding volatile energy and food prices was rising. He noted that low oil prices weigh on inflation.

Weidmann warned that the ECB's asset-buying programme could have the same effect as buying government bonds directly from issuer countries, adding that it is forbidden.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,059.5 +127.72 +2.15 %

DAX 9,798.11 +158.52 +1.64 %

CAC 40 4,417.02 +94.86 +2.19 %