The news of extra liquidity being injected into the markets helped the big four put on strong gains. Westpac jumped 2.7% while NAB climbed 3.3%.
In the mining sector Rio Tinto rocketed 4.7%, while rival BHP advanced 4.1%.
Iron ores miners Fortescue and Mount Gibson Iron both enjoyed strong gains, jumping 5.7%, and 5.6%, respectively.
Paladin was the stand out of the energy sector, leaping 7.4% on the day.
Drilling services provider Boart Longyear soared 10.1% after it flagged a possible increase in 1H earnings.
The ASX 200 soared 109 points (+2.6%) to close at 4229.