Sterling briefly pares gains, gilts slip after BoE

LONDON Oct 8 (Reuters) - Sterling and UK gilt futures pared gains on Thursday after the Bank of England made no changes to its asset-puchasing plan, but said it would keep the quantitative easing programme under review.

In a widely expected decision, the BoE left its official interest rate at a record low of 0.5 percent for the seventh month running, and also said it would keep its 175 billion pound asset-buying programme in place. [ID:nLAC003492]

But it said it would keep the scale of the programme under review, adding that it expected it would take one more month to get through the full buying amount.

Sterling GBP=D4 traded at $1.6060, after dipping to around $1.6045 shortly after the decision. By 1116 GMT, it was unchanged from before the announcement.

The euro EURGBP=D4 traded at 91.93 pence, pulling back from a pop up to 92.06 pence. Before the announcement, the pair had traded at 91.90 pence.

Britain's FTSE 100 .FTSE was little changed after the BoE statement. It was up 0.6 percent. December gilt futures pared gains to stand at 120.53, up 4 ticks on the day, having stood at 120.64, 15 ticks higher, before the announcement. Front month short sterling contracts we re unchanged, down 1 tick on the day.

Euro zone government bond futures FGBLc1 were little changed after decision, trading flat on the day at 122.78.

The interest rate-sensitive two-year Schatz yield EU2YT=RR was also steady after the BoE decision, up 3.2 basis points on the day at 1.271 percent.

(Reporting by London Treasury Team)