Bank of England Definition - The Bank of England, formally the Governor and Company of the Bank of England, is the central bank of the whole of the United Kingdom. It was established in 1694 to act as the English Government‘s banker, and its structure and operation have become the model on which most modern, large central banks have been based. The Bank‘s Monetary Policy Committee has the sole responsibility for managing monetary policy of the country and for setting the official interest rate. The Bank‘s headquarters are located in London‘s main financial district, the City of London, on Threadneedle Street. It is sometimes referred to as "The Old Lady of Threadneedle Street" or simply "The Old Lady". The most important functions of the bank are maintaining price stability and supporting the economic policies of the British Government, thus promoting economic growth. Stable prices and confidence in the currency constitute monetary stability. The Bank of England also has a monopoly on the issue of banknotes in England and Wales.