The European Central Bank has cut its main lending rate to 2%, down from 2.5%.
The cut, in line with consensus forecasts, marks the fourth cut in just over three months amid signs that the financial crisis is biting hard into the eurozone economy and as inflation falls further below the ECB's 2%.
AIB, Halifax, Ulster Bank, First Active, Permanent TSB and EBS Building Society have confirmed that they are passing on the half a percentage point interest rate cut in full to their variable and tracker rate mortgage holders.
Bank of Ireland says it is passing on the interest rate cut in full to owner occupiers with variable or tracker rate mortgages.
Irish Nationwide Building Society says it will also be passing on the ECB rate cut in full to mortgage holders.
The ECB also set new rates for its overnight facilities, after announcing in December it would increase the gap between these rates and the benchmark rate to back to 1%.
From 21 January, funds borrowed from its marginal lending facility will attract an interest rate of 3% and overnight deposits will pay 1%.
Jean-Claude Trichet said economic data and surveys since the ECB's last meeting pointed to a 'further weakening of economic activity around the turn of the year, indicating the materialisation of previously identified downside risks to activity'.
But he appeared to flag a further rate cut was likely in March rather than February, telling a news conference the 'next important rendez-vous' would be in March as the central bank would have fresh economic forecasts then.
