The governor of the Bank of England faces tough questions from Scottish businesses over the latest rise in interest rates

Mr George, who is in Scotland to preside over a meeting of the bank's "court" or board for the first time in its 305-year history, is using his visit to meet business groups and unions.

However, he is also being confronted by accusations that the bank is playing a part in widening the so-called north-south economic divide.

The reception from some quarters is expected to be even more hostile given Scottish business leaders' adverse reaction to the bank's latest rise in interest rates on Thursday.

The bank's Monetary Policy Committee (MPC) announced a quarter point increase in base rates to 5.75%.

'Blow for business'

The committee, which has raised rates several times in the last few months, has been accused of making Scotland suffer because of economic overheating in the south east of England.

CBI Scotland described last week's rise as a "blow for Scottish business".

And the Scottish Trade Union Congress' chief correspondent Tracey White said although she welcomed Mr George's visit he would be sent back to London with some strong messages.

"We were disappointed with the rates rise last week. It was blunt and potentially damaging to Scotland.

'Right messages'

"I think what the STUC will be saying is while it is good to come here you should be taking the right messages back.

"The Bank of England has control over only part of the UK's monetary policy and we understand that the Chancellor Gordon Brown is responsible for other economic decisions.

"We believe a strong regional policy would be of benefit to Scotland," said Ms White.

Mr George caused a storm two weeks ago when he suggested that any move to protect particular regions or sectors of the economy could jeopardise the UK economy as a whole.

The Scottish National Party said his comments were "insensitive and ill-judged" and UK economic policy was all about meeting the needs of London and the south east at the expense of Scotland.

Peter Hughes, chief executive of Scottish Engineering, said some 10,000 jobs had been shed in the engineering manufacturing sector over the past year and more would go.

'Too proactive'

He blamed the MPC, saying its decisions were "too proactive".

"There are far too many knee-jerk reactions. When figures come out on a monthly basis, it could well be to do with consumer spending or it could well be about house price changes," said Mr Hughes.

"If the MPC is going to react to these things on such a regular basis, quite frankly that's going to harm the manufacturing sector."

Before its monthly meetings, the committee takes anecdotal evidence on regional performances from a network of "agents" around the UK.

Janet Bulloch, who provides information from Scotland, said: "I think that based on what I am hearing there's a lot that's very positive about the Scottish economy at the moment.

"Overall, I think the recovery is going quite well although it has to be said there are parts of the country and sectors of the economy that are doing much less well.

"The agricultural sector has been having particular difficulties and parts of the manufacturing sector also. By contrast the service industries on the whole are doing very well."