The incident happened in the city's central Cathedral Quarter area near many restaurants and bars on one of the busiest shopping nights before Christmas.
Local media said hundreds of people were evacuated from the area.
Police warned last month of an upsurge in activity by dissident republican groups who still want the British province to be part of the Republic of Ireland.
The blast comes weeks after a large bomb placed in a hijacked car partially exploded in Belfast on November 24, also without causing any casualties.
The unrest was largely brought to an end by 1998 peace accords which created a power-sharing government between the two communities, although low-level violence continues.