HIGHLIGHTS-India's central bank governor on inflation

MUMBAI, March 31 (Reuters) - India's central bank governor said on Monday inflation was unacceptably high and the bank was ready to act if needed but the situation was complex and required careful consideration.

Following are comments from Reserve Bank of India (RBI) Governor Yaga Venugopal Reddy to reporters after making a speech.

For a story, please double-click on [ID:nBOM330069]. --------------------------------------------------------------- - ON INFLATION:

"Inflation is unacceptably high. We did expect some pressure on inflation in the monetary policy on Jan 29. Our policy stance has taken note of these inflationary pressures. However inflation has turned out to be more than anticipated, in fact much more than anticipated."

"There is potential for inflationary pressure to be from the global side on Indian prices."

"We are very, very concerned about the impact of the recent spurt in prices on inflation expectations."

ON A POLICY RESPONSE TO INFLATION:

"We are in full readiness to take appropriate action if and when we make a judgement that any action is needed."

"Any decision to act has to carefully assess this extremely complex situation."