LONDON, June 13 Reuters Britain39;s labour market looked much stronger than expected during the three months to April, according to data on Tuesday that will bolster bets that the Bank of England will keep on raising interest rates this year.

The Office for National Statistics said wages excluding bonuses were 7.2 higher than a year earlier during the three months to April.

Economists polled by Reuters had forecast a 6.9 rise on average.

Sterling shot up by around a quarter of a cent against the dollar to 1.255 in response.

The unemployment rate, which had been expected to rise to 4.0, fell to 3.8 in the three months to April from 3.9 in the three months to March.

April39;s data are the first to include the impact of a 9.7 rise in the minimum wage, and will be closely analysed by the Bank of England as it tries to judge how lasting an effect Britain39;s recent spell of doubledigit inflation has had.

BoE officials are likely to note that the headline employment and wages data came in above all forecasts, while the unemployment rate was below all forecasts.

Financial markets ahead of Tuesday39;s data already priced in peak interest rates in excess of 5.5 by December, from 4.5 now, and the strength of the latest figures could further ratchet up these projections when the futures market opens at 0630 GMT.

Employment rose by 250,000 in the three months to April, against the Reuters poll forecast for a 162,000 increase.

Reporting by Andy Bruce, writing by Sachin…