Sterling jumps as BoE opts for no QE expansion

* Sterling hits high of $1.6272 GBP=D4

* BoE leaves QE target unchanged, rates steady at 0.5 pct

* BoE says to review QE scheme in August

* Pound buoyed as stocks gain, easing risk aversion

By Tamawa Desai

LONDON, July 9 (Reuters) - Sterling jumped against the dollar and euro on Thursday after the Bank of England kept its quantitative easing target unchanged, surprising markets which had expected the central bank to expand its asset buying scheme.

The BoE left the target at 125 billion pounds. Markets had expected the central bank to expand the total by 25 billion pounds, which would have allowed the central bank to pump money into the economy until August when it publishes new quarterly economic forecasts. [ID:nTAR005441]

The central bank left key interest rates unchanged at 0.5 percent, as widely expected.

Sterling jumped to a session high of $1.6272 GBP=D4 from around $1.6170 shortly before the announcement. By 1412 GMT, it was up 1.0 percent at $1.6226.