* FTSEurofirst 300 up 0.3 percent
* BoE keeps interest rates on hold; ECB meeting awaited
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By Harpreet Bhal
LONDON, Oct 7 (Reuters) - European shares rose by midday on Thursday, with investors awaiting an interest rate decision and policy indications from the European Central Bank after the Bank of England kept interest rates on hold as expected.
By 1112 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.3 percent at 1,073.42 points.
The BoE left interest rates at 0.5 percent for a 20th consecutive month on and kept its asset-buying programme on hold, but the outcome probably masked a vigorous debate about whether economic conditions require tighter or looser policy.
The European Central Bank (ECB) is expected to deliver an interest rate decision at 1145 GMT, with a news conference expected at 1230 GMT.
Banks were among the biggest gainers, with Barclays, Societe Generale, BNP Paribas and Deutsche Bank up 0.2 to 1.2 percent.
Equities have been boosted by growing speculation that the U.S. Federal Reserve could embark on more quantitative easing measures after the Bank of Japan unexpectedly cut rates close to zero on Tuesday and said it would pour money into the markets through asset purchases.
Analysts, however, said the move would not be a long-term solution to spur economic growth.
"Quantitative easing in the U.S. is intended to effectively devalue the currency and replace an economic stimulus. But there is no short term solution. They don't produce anything in the U.S. which is in demand outside the country, which could improve their trade account," said Heino Ruland, strategist at Ruland Research in Frankfurt.
Individual stocks on the rise included Renault which added 7.1 percent after the French carmaker said it has sold a chunk of its 21.7 percent stake in Swedish truck maker Volvo AB, cutting it to 6.8 percent, to help reduce debt.
Across Europe, Britain's FTSE 100, Germany's DAX and France's CAC 40 were up 0.1 to 0.2 percent. (Editing by Hans Peters)