Lagarde comments at ECB press conference

FRANKFURT, 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.

Following are highlights of ECB President Christine Lagarde's comments at a news conference after the policy meeting.

MORE ON THE BALANCE OF RISKS

"If you walk back to June, we had a highly uncertain situation. It was post April 19, sure, but it was pre-July, and certainly pre-August 21 when a deal was agreed...

"Two things have clearly moved out of our radar screen when it comes to downside risk. The first one is the risk of European retaliation that was factored into our June projection ... and the second thing is the (trade) uncertainty."

ON INFLATION

"The disinflationary process is over."

"We continue to be in a good place, but we are not on a predetermined path, and we will take stock meeting by meeting ... in order to make sure that we stay in a good place."

UNANIMOUS DECISION

"I never want to overstretch the general agreement in the room, but we had a unanimous decision by the Governing Council today to leave all three interest rates unchanged.

"And we discussed, of course, the projections. We discussed the risk, but I think that what I have just formulated for you is something that was agreed unanimously around the table."

NOT PRE-COMMITTING

"We will follow a data dependent meeting-by-meeting approach to determining the appropriate monetary policy stance."

"We are not pre-committing to a particular rate path, and in any case, we stand ready to adjust all of our instruments."

"We continue to be in a good place."

MORE BALANCED GROWTH RISKS

"Risks to economy growth have become more balanced, while recent trade agreements have reduced uncertainty, a renewed worsening of trade relations could further dampen exports and drag down investment and consumption.

"A deterioration in financial market sentiment could lead to tighter financing conditions, greater risk aversions and weaker growth.

"By contrast, higher-than-expected defence and infrastructure spending, together with productivity enhancing reforms, would add to growth.

"An improvement in business confidence could stimulate private investment. Sentiment could also be lifted and activities spurred if geopolitical tensions diminished, or if the remaining trade disputes were resolved faster than expected."

ON THE ECONOMIC OUTLOOK

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"Higher tariffs, a stronger euro and increased global competition are expected to hold growth back for the rest of the year. However, the effect of these headwinds on growth should fade next year."

(Reporting by Reuters Global News Desk)

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