CORRECTED-Sterling jumps, UK gilts tumble after BoE ups QE

(Corrects gilt/Bund spread in 12th paragraph)

LONDON, Nov 5 (Reuters) - Sterling jumped, UK gilts tumbled and British stocks briefly slipped on Thursday after the Bank of England expanded its quantitative easing programme by 25 billion pounds, allaying some concerns about a bigger increase.

Euro zone government futures hit a session low, taking a cue from the sell-off in UK goverment debt.

The BoE also left interest rates unchanged at a record low of 0.5 percent, as expected. [ID:nLAC003525

Two-thirds of analysts had predicted the BoE would expand its asset-buying scheme, but opinion had been split on whether the increase would be 25 billion or 50 billion pounds.

Sterling GBP=D4 jumped more than a full U.S. cent to $1.6620, hitting its highest in two weeks.

The euro EURGBP=D4 fell more than half a pence to the day's low of 89.33 pence.

The December gilt future FLGZ9 tumbled more than 50 ticks to stand at 116.49 by 1206 GMT, having stood at 117.31 ahead of the decision.

The 10-year gilt yield shot up more than 7 basis points to 3.86 percent, testing its highest level in three months.