The Taoiseach has called on the remaining major financial institutions to pass on to customers the full benefit of the interest rate cut announced last week by the European Central Bank (ECB).
This afternoon, the Permenant TSB, National Irish Bank and ACC all announced that they would be passing on the cut to mortgage holders from the beginning of next month.
However, neither the Bank of Ireland, the AIB, or the EBS have indicated that they will follow suit.
While acknowledging that the Government could not force any bank or mortgage lender to pass on the 0.5 per cent cut, Mr Ahern said there was a "moral imperative" for them to do so.
Mr Ahern said he saw no reason for the banks not to cut borrowing rates. He said he had not heard or read of any reports of any bank being in financial trouble that might hinder its ability to match the lower rates on loans.
The bank announced it will pass on the full 0.5 per cent interest rate announced last Thursday. This was followed by a statement from National Irish Bank confirming it is also to reduce its mortgage rate by 0.5 per cent. IIB Homeloans were the first Irish mortgage lender to announce a rate cut on Friday.
The reduction will mean a saving of €39.13 each month for customers with a €150,000 mortgage over 20 years, Permanent TSB said.