INSTANT VIEW-ECB holds rates steady at 2%, lowers inflation forecasts

LONDON, Sept 11 (Reuters) - The European Central Bank left interest rates unchanged on Thursday as expected but offered no clues about its next move, even as investors continue to bet that more support will be needed as inflation dips below target next year.

The move was widely anticipated in financial markets, although the euro slipped on news that the ECB had lowered its inflation projections.

It was last trading 0.2% lower at $1.1684 EUR=EBS, while interest rate-sensitive short-dated bond yields were broadly steady on the day DE2YT=RR, IT2YT=RR. Europe's STOXX index was up 0.4% on the day, a touch higher compared to where it stood before the ECB statement.

MARCHEL ALEXANDROVICH, ECONOMIST, SALTMARSH ECONOMICS, LONDON:

"No surprises from the ECB as it leaves interest rates unchanged. However, in terms of the new forecasts, there are downward revisions to the inflation forecasts for 2026 and 2027, which suggests that the ECB maintains a slight easing bias as it heads into year-end."

SYLVAIN BROYER, CHIEF EMEA ECONOMIST, S&P GLOBAL RATINGS:

"The ECB is done cutting rates. Sticky services and food inflation keep consumer sentiment under strain. Real wage growth still outpaces productivity, and easing the policy rates to weaken the euro would be useless in the present situation."