Eddie George, who oversaw the Bank of England's independence from government control 12 years ago, died today aged 70 after a long battle with cancer.
British prime minister Gordon Brown said George was "one of the world's greatest and most respected central bankers".
"He was universally admired for his expertise, judgement and wisdom," he said in a statement.
Nicknamed "Steady Eddie" for his dedication to stable monetary policy and keeping a lid on inflation, Mr George was governor of the central bank for a decade until 2003.
He first came to the public's attention in the mid-1990s when he met regularly to advise then chancellor of the exchequer Kenneth Clarke on interest rates policy.
The perennial struggle - between the inflation-wary George and the growth-promoting politician - was jokingly referred to as the 'Ken and Eddie show'.
That came to an end in 1997 when prime minister Tony Blair's newly elected Labour government decided to allow the Bank of England to set interest rates on its own.
Current Bank governor Mervyn King said Mr George had "served the bank for more than 40 years and was an outstanding governor, colleague and friend".
Mr George would be remembered as the governor who led the Bank of England to independence.
"Only a few weeks ago, we reminisced about the events that led to that significant change for the bank," he said in a statement. "Eddie will be greatly missed by his former colleagues in the bank and the City more widely."
Mr George joined the imposing institution on London's Threadneedle Street, with its doormen decked out in top hats, red waistcoats and pink tails, at the age of 24 with a degree in economics from Cambridge University.
A keen bridge player, his job interview turned out to be with a man he had found himself playing against at the Cambridge University Bridge Club the previous day.
With typical modesty, Mr George recalled the interviewer telling him: "You must come and work for us. We play very good bridge at the Bank of England."
Mr George is survived by his wife, Vanessa, and three adult children.
Reuters