The ECB also eased the terms of its long term loans to banks and introduced a tiered deposit rate to help banks. The decision appears to have been spurred by the prolonged trade dispute between the USA and China.
The central bank, which usually moves monetary policy in lock-step with the ECB, says negative rates have stabilised the economy and supported economic growth in the wake of the financial crisis that hit in 2008.
In critical comments less than an hour after the ECB decision, Trump used a tweet to attack the Fed for its lack of action: "European Central Bank, acting quickly, Cuts Rates 10 Basis Points".
It trimmed the rate on deposits it takes from banks to minus 0.5% from minus 0.4%, a penalty that pushes banks to lend their excess cash.
Starting on November 1, the bank will also resume its asset purchase program at a monthly pace of 20 billion euros. "President Trump tweeted: "[The ECB] is trying, and succeeding, in depreciating the Euro against the VERY strong Dollar, hurting USA exports".
The central bank also extended a promise to keep rates at record lows for as long as necessary.
Mr Draghi is due to make way for incoming ECB President Christine Lagarde on 1 November. In fact, with an interest rate of -0.5%, the Euro will continue to struggle against most currencies although it is possible that perhaps some of the selling will update right around this big figure and cause a bit of a bounce.
ECB President Mario Draghi made the announcement Thursday to address the growing instability in the European economy.
Danish banks last month offered homebuyers 30-year mortgages at a fixed rate of 0.5%, the cheapest ever in Denmark.
Chief economist at ING, Carsten Brzeski, said 'Despite all market excitement now, the question remains whether this will be enough to get growth and inflation back on track as the real elephant in the room is fiscal policy.