"With our own Scottish Chambers of Commerce Quarterly Business Survey projecting only a marginal improvement in output and confidence in the early part of 2013, these latest figures underline the picture of an economy that has been treading water for an extended period of time, " she said.

BBC: Scotland business

Although economic output has been broadly flat for the past two years, Sir Mervyn said that masked "a more encouraging underlying picture".

BBC: Inflation to stay above target, says Bank of England