The Philippine central bank said on Thursday that risks of inflation were skewed to the downside, and signalled there could more rate cuts in the offing.

Speaking after the bank announced a 25 basis point cut in key interest rates, deputy governor Diwa Guinigundo said he saw "room for accommodation" in rates.

He also said it was difficult to say if the central bank was nearing the end of the current easing cycle.

"Risks to inflation are skewed to the downside given expectations of weaker global and domestic demand conditions and a low probability of a significant near-term recovery in commodity prices," the central bank said earlier in a statement.

"Upside risks remain however, and these are linked to the volatility in exchange rates and the prices of oil and some food products, as well as increases in utility rates."