Latest: Police have described last night's suspected car bomb attack outside a court in Derry as "unbelievably reckless".
The PSNI are investigating after the incident occured in the city centre at 8.10pm last night.
Residents were evacuated and witnesses reported hearing a loud bang and seeing a large plume of smoke.
Assistant Chief Constable Mark Hamilton said today that a suspicious vehicle was spotted by police 15 minutes before the device exploded.
He said they believe that the car had been "hijacked" in the city a short time before the explosion.
Constable Hamilton said: "At around 7.55pm last night officers on patrol in Bishop Street spotted a suspicious vehicle and were making checks when, around five minutes later, information was received that a device had been left at the courthouse.
"We moved immediately to begin evacuating people from nearby buildings including hundreds of hotel guests, 150 people from the Masonic Hall and a large number of children from a church youth club.
"The device detonated at 8.10pm. At this stage it appears as though the vehicle used had been hijacked from a delivery driver in the Quarry Street a short time before the explosion.
"This attack was unbelievably reckless. Thankfully the attackers failed to kill or injure any members of the local community out socialising and enjoying the best of what the city has to offer.
"The people responsible for this attack have shown no regard for the community or local businesses. They care little about the damage to the area and the disruption they have caused.
"The area remains sealed off and church services at St Augustine's have been moved to St Peters and the cathedral services have been cancelled this morning as a result.
Constable Hamilton thanked the local community for its support and co-operation and asked anyone with information to contact police.
Earlier: Investigation underway after suspected car bomb attack in Derry
An investigation by the PSNI is underway after a suspected car bomb exploded in Derry last night.
The police, as well as firefighters and the ambulance service, sealed off the scene close to a courthouse on Bishop Street in the city.
Witnesses earlier said they heard a loud bang and saw a large plume of smoke, and local residents were evacuated.
There has been no reports of any casualties at this stage.
A photograph was tweeted from the PSNI Twitter account warned people to stay away from the area.
The tweet from the PSNI's Derry City and Strabane District account also warned members of the public that Bishop Street was closed, adding the words "suspected car bomb".
A further update was posted on the PSNI's Foyle Facebook page.
"As far as we know no one injured. There is another car we are not happy about. There are ongoing necessary evacuations."
Tánaiste Simon Coveney tweeted his disgust at the incident.
"I utterly condemn the car bomb terrorist attack in Derry this evening," he said.
"There is no place and no justification possible for such acts of terror, which seek to drag Northern Ireland back to violence and conflict.
Derry's SDLP mayor John Boyle challenged those responsible on what the aim was.
He said: "I would actually like to ask the people responsible for this what it actually was that they thought they were going to achieve.
"It achieves nothing, it didn't achieve anything in the past, it didn't achieve anything right now.
"I have a question for them, what was this all about, because quite frankly this is not something that the people of this city wanted to see, it's not something they support, and as Mayor of Derry City and Strabane District Council, I have to say I feel it incumbent upon me to speak out on behalf of the vast, vast majority of people in Derry, Strabane and indeed across this island, this is not what we want.
"This is the past and it has to stay in the past. We don't want to see any more of it."
DUP leader Arlene Foster said it was a "pointless act of terror" which "must be condemned in the strongest terms".
"Only hurts the people of the City. Perpetrated by people with no regard for life," she said.
"Grateful to our emergency services for their swift actions which helped ensure there have been no fatalities or injuries."
Sinn Fein Foyle MP Elisha McCallion also condemned the explosion.
"This incident has shocked the local community," she said. "In particular, there are many elderly residents who live in the area who have been alarmed.
"Thankfully no-one appears to have been injured.
"Derry is a city moving forward and no-one wants this type of incident. It is not representative of the city.
"I would encourage anyone with information about this incident to bring it to the police."
PA & Digital Desk
