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* FTSE 100 down 0.1 pct
* Banks extend post-ECB rally
* Bunzl, Burberry fall after downgrades
* Mid-cap pub operators in focus after results
By Kit Rees
LONDON, Sept 9 (Reuters) - UK shares fell on Friday,extending losses from the previous session after the EuropeanCentral Bank made no changes to its asset-buying programme,although British banks rallied.
The FTSE 100 index was down 0.1 percent at 6,850.48points by 0858 GMT and on track to post a loss for the week.
The ECB kept rates on hold and while maintaining thetimetable for its quantitative easing programme, President MarioDraghi said that the possible extension of the programme had notbeen discussed, although bank committees had been ordered toconsider options, sending European markets lower.
Britain's banks rose, however, with Royal Bank of Scotland and Barclays up 3 percent and 1.7 percentrespectively, with analysts saying that Draghi's lack of anindication for any further rate cuts had been taken as apositive by investors.
"These lower interest rates are really damaging the banks,"Jonathan Roy, advisory investment manager at Charles HanoverInvestments, said.
"Whereas there has been a continual cutting in rates overthe last eighteen months, which has been really damaging forcore banking profitability ratios, it signalled yesterday thatthere might be a plateau now in deterioration of those ratioswhich is being taken as a positive for the banks currently."
Broker downgrades weighed on Bunzl, which dropped3.1 percent after HSBC cut its rating on the stock to "hold",citing macro uncertainty, and Burberry, which fell 2percent after Goldman Sachs removed the luxury goods stock fromits Sustain Focus List.
"Over the last two years (FY14-16), Burberry has seen weakerthan expected financial performance," Goldman said in a note.
"The key drivers of this deterioration have been subduedsales growth and increasing costs associated with the company'sstrategic investments, including omni-channel. We are concernedthat these headwinds continue."
Outside of the blue chips, pub chain operator J.D.Wetherspoon rose 4.3 percent after reportingbetter-than-expected results.
Peer Greene King, however, dropped 3.9 percent afterreporting a slowdown in like-for-like sales growth and sayingthat trading could get tougher as a result of Brexit. (Editing by Alexander Smith)
