* Three-month dollar Libor rates extend fall

* Ireland pours $7.7 bln into 3 main banks

* China cuts interest rates again

(Updates with Libor fixings, changes byline, pvs HONG KONG)

By Ian Chua

LONDON, Dec 22 (Reuters) - The cost of borrowing dollar funds between banks mostly fell on Monday, extending the recent decline following the U.S. Federal Reserve's aggressive interest rate cut to as low as zero a week ago.

The three-month dollar London interbank offered rate (Libor) was fixed at around 1.47 percent, the lowest since mid-2004, while the spread over anticipated central bank rates, or Overnight Index Swap (OIS) rate -- a gauge of money market stress -- also contracted slightly. ((See [ID:nLM572638]))

"The response to the Fed action last week was quite positive, we've seen quite significant improvements in Libor rates and even Libor/OIS spread, so that'll continue at a gradual pace," said Nick Stamenkovic, strategist at RIA Capital Markets in Edinburgh.