A statement from the bank said: 'During our research and discussion with manufacturers and consultants, we were informed that animal-derived additives are used extensively in the many different types of plastics found in a wide range of household goods used on a regular basis, eg in cosmetics, plastic carrier bags, household detergent bottles, and auto parts'. "Value for money was also a consideration in the Bank's decision", the bank said in a statement.
After facing backlash from vegans, Hindus and Sikhs at the use of animal products in the new plastic £5 note when it went into circulation a year ago the Bank launched a public consultation.
"The bank fully recognises the concerns raised by members of the public, both prior to and during the consultation".
The Bank of England has rejected calls to scrap new banknotes that contain traces of animal fat.
Some vegans and Hindus had called on the bank to remove tallow from the 5-pound note introduced a year ago - Britain's first polymer banknote.
However, the Bank said today the future production of fivers, new £10 notes and new £20s, which are being launched in 2020, will carry on as it has. Of those who expressed a preference, 88 percent objected to the use of animal-derived ingredients in notes, while just under half were against palm oil.
But the Bank said it had to balance this "against its other public duties and priorities" and other evidence it had gathered.
The only alternative for its polymer banknotes was to use more expensive chemicals derived from palm oil, and that its suppliers were unable to commit to that in an environmentally friendly way, the BoE said.
It said it had consulted with the UK Treasury, as the additional cost would have had to have been taken on by the taxpayer.
"Value for money was also a consideration in the Bank's decision".
It adds that the amount of animal products in the notes is "typically less than 0.05%".